Monsato to Pay $80M SEC Penalty
The U.S. Securities and Exchange Commission has found Monsanto Co. in violation of accounting rules and misstating earnings related to its Roundup herbicide, and Monsanto has agreed to pay $80 million in penalties.
Without admitting or denying the charges, which include fraud, Monsanto agreed to pay the fine in order to settle allegations that it had insufficient internal controls to account for millions of dollars in rebates that it offered to retailers and distributors. Monsanto ultimately booked considerable revenue, but failed to recognize the costs of the rebate programs on its books. As a result, the company misstated its consolidated earnings for a three-year period.
Three Monsanto account executives agreed to pay penalties, with two being temporarily suspended from acting as accountants for public companies. The SEC said it did not uncover any personal misconduct by Monsanto CEO Hugh Grant or former Chief Financial Officer Carl Casale.
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