$40M SEC penalty settles ADM (NYSE: ADM) case as DOJ exits
Rhea-AI Filing Summary
Archer-Daniels-Midland Company announced it has reached a settlement with the SEC over issues related to intersegment sales involving its Nutrition, Agriculture Services & Oilseeds, and Carbohydrate Solutions segments. The company will pay a $40 million civil penalty and consent to a cease-and-desist order covering multiple antifraud, reporting, and books-and-records provisions of the federal securities laws, without admitting or denying wrongdoing.
The company states that the settlement amount is not expected to have a material adverse effect on its results of operations or financial position. The DOJ has also informed the company that it is no longer a subject of its investigation, and these outcomes bring the SEC and DOJ investigations to an end.
Positive
- Regulatory investigations concluded: The DOJ has notified the company it is no longer a subject of its investigation, and both the SEC and DOJ inquiries are now ended, removing ongoing federal investigative uncertainty.
Negative
- SEC enforcement action and $40 million penalty: The company agreed to pay a $40 million civil penalty and accept a cease-and-desist order covering antifraud, reporting, and books-and-records provisions, highlighting prior compliance and disclosure deficiencies.
Insights
ADM resolves SEC case with $40M penalty; DOJ probe ends.
Archer-Daniels-Midland has settled an SEC investigation tied to intersegment sales among its Nutrition, Agriculture Services & Oilseeds, and Carbohydrate Solutions segments. The settlement includes a
The company states the
The DOJ has notified the company that it is no longer a subject of its investigation, and both SEC and DOJ inquiries are now concluded. Future company filings will be important for understanding any changes to internal controls, segment reporting practices, and ongoing compliance efforts following this settlement.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
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| Item 8.01 | Other Events. |
As previously disclosed, Archer-Daniels-Midland Company (the “Company”) had been under investigation by the United States Securities and Exchange Commission (“SEC”) and the Department of Justice (“DOJ”) relating to, among other things, intersegment sales between the Company’s Nutrition segment and the Company’s Agriculture Services & Oilseeds and Carbohydrate Solutions segments.
On January 27, 2026, the Company issued a press release announcing that it has reached a settlement with the SEC, resolving its investigation in its entirety. Under the terms of the settlement, the Company, without admitting or denying any wrongdoing, has agreed to pay a civil penalty of $40 million and to cease and desist from committing or causing any violations and any future violations of Section 17(a) of the Securities Act and Sections 10(b), 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 10b-5, 12b-20, 13a-1, 13a-11, and 13a-13 thereunder. The settlement amount is not expected to have a material adverse effect on the Company’s results of operations or financial position.
In addition, the DOJ has notified the Company that it is no longer a subject of its investigation. These outcomes end the investigations of the Company by the SEC and DOJ.
| Item 9.01 | Financial Statements and Exhibits. |
(d) Exhibits The following exhibits are furnished or filed, as applicable, herewith:
| Exhibit |
Description | |
| 99.1 | Press release dated January 27, 2026 | |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) | |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| ARCHER-DANIELS-MIDLAND COMPANY | ||||||
| Date: January 27, 2026 | By | /s/ R. B. Jones | ||||
| R. B. Jones | ||||||
| Senior Vice President, Chief Legal Officer, and Secretary | ||||||
FAQ
What did ADM (ADM) announce regarding the SEC investigation?
How much will ADM (ADM) pay under the SEC settlement?
Which laws and rules are covered by ADM’s SEC cease-and-desist order?
Did ADM (ADM) admit wrongdoing in its SEC settlement?
What is the status of the DOJ investigation into ADM (ADM)?
Will the $40 million SEC penalty materially affect ADM’s finances?
