Tuesday, March 5, 2024
HomeBusinessKraft, execs to pay more than $62 million over U.S. accounting scheme...

Kraft, execs to pay more than $62 million over U.S. accounting scheme charges By Reuters

Date:

Related stories

What Is Predictive Analysis And Its Role In A Winning Marketing Strategy

If you’re in marketing, there’s a good chance you’ve...

Understanding the Duration of Botox

Botox is widely diagnosed in medical and beauty circles...

How to get free leads for my business

It doesn't matter whether you are a scaling startup...

The Business Of Living Longer: Longevity Supplements On The Rise

Humans have always sought ways to extend their lease...


© Reuters. The Kraft logo is pictured outside its headquarters in Northfield, Illinois, March 25, 2015. REUTERS/Jim Young/File Photo

By Chris Prentice and Susan Heavey

WASHINGTON (Reuters) -The Kraft Heinz (NASDAQ:) Company and two former executives have agreed to pay more than $62 million to settle charges they falsified supplier contracts to achieve cost savings in a multi-year accounting scheme, the U.S. securities regulator said on Friday.

The food company engaged in an array of accounting misconduct from the last quarter of 2015 to the end of 2018 during which it improperly inflated key earnings for investors, the Securities and Exchange Commission (SEC) said on Friday.

The alleged misconduct began as a result of a “cost savings gap” leading up to Heinz’s 2015 merger with Kraft and continued for years amid pressure to make good on promises the new company would “deliver on certain cost savings,” according to SEC documents.

Kraft restated its financials in June 2019 after the launch of an SEC probe, correcting $208 million in improperly recognized cost savings from nearly 300 transactions, the regulator said.

Kraft, which did not admit or deny the SEC’s findings, said in a statement that it fully cooperated with the SEC’s investigation and has taken “remedial action and proactive steps” to boost its policies and controls for financial reporting.

The Chicago-based company agreed to pay a $62 million civil penalty and not commit future violations as part of its agreement with the SEC. Kraft recorded the penalty in the second quarter of 2021, the statement said.

See also  Bank of Israel on delta strain risks, economic recovery in 2022

Former chief operating officer Eduardo Pelleissone, who was accused of negligence-based anti-fraud and other controls violations, agreed to pay a penalty of $300,000 and another $14,000 in disgorgement.

Former chief procurement officer Klaus Hofmann agreed to pay $100,000 and was barred from serving as a public company officer or director for five years in a settlement that is pending court approval.

Neither executive admitted or denied the SEC’s findings. Lawyers for both did not respond immediately to requests for comment.

Warren Buffett’s Berkshire Hathaway (NYSE:) Inc owns about 26% of Kraft Heinz. Prices of Kraft shares were little-changed on Friday.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.





Source link

Bellie Brown
Bellie Brownhttps://businesstimes.org
Hi my lovely readers, I am Bellie brown editor and writer of Businesstimes.org. I write blogs on various niches such as business, technology, lifestyle., health, entertainment, etc as well as manage the daily reports of the website. I am very addicted to my work which makes me keen on reading and writing on the very latest and trending topics. One can check my more writings by visiting Cleartips.net

Latest stories