Summary:
- The former CFO of Archer-Daniels-Midland, Vikram Luthar, is facing a lawsuit filed by the Securities and Exchange Commission (SEC) for allegedly inflating the performance of the company’s Nutrition business segment through retroactive adjustments in fiscal years 2021 and 2022.
- The SEC’s complaint accuses Luthar of using ADM’s other business segments to cover up the shortfall in Nutrition’s growth targets, misleading investors in the process.
- Luthar’s attorney denies the allegations, stating that the transactions in question were transparent and conducted in good faith.
Insight:
The SEC’s lawsuit against Luthar coincides with ADM agreeing to pay a $40 million civil penalty to settle charges of inflating business performance. The Department of Justice also closed its investigation into ADM’s accounting practices.
This settlement, along with ADM’s efforts to improve reporting processes, signals a positive step towards resolving the accounting issues surrounding the company.
ADM, along with two former executives, violated various securities laws according to the SEC, leading to penalties and cooperation agreements to avoid future violations.
The SEC is seeking reimbursement from Luthar for any compensation received post the fiscal year 2022 10-K filing, highlighting the focus on accountability within the company.
The lawsuit follows ADM’s previous accounting scandal that led to Luthar’s resignation in 2024, with a new CFO taking over to address the root causes of the material weakness.
ADM’s CEO expressed relief at putting these matters behind the company, emphasizing the commitment to transparency and integrity moving forward.