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National & World Ag News Headlines |
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Monsanto Fined for Misstating Roundup's Earnings
USAgNet - 02/11/2016
Monsanto Co. will pay $80 million to settle civil accounting violations after it allegedly misstated its earnings in connection with its top-selling Roundup product, U.S. securities regulators said on Tuesday. The Securities and Exchange Commission (SEC) also
said that three accounting and sales executives have also agreed to settle charges in connection with the case, reports Reuters.
The SEC's case against the agricultural giant revolves around a corporate rebate program designed to boost sales of Roundup, a popular weed killer. The rebate program was created to combat rising generic competition which threatened to cut into the
company's profits.
The agency said that Monsanto had insufficient accounting controls to account for millions of dollars in rebates that it offered to retailers and distributors. It ultimately booked a sizeable amount of revenue, but then failed to recognize the costs of the rebate
programs on its books.
That led the company to "materially" misstate its consolidated earnings for a three-year period.
In agreeing to settle, Monsanto neither admitted nor denied the charges, which include fraud. The agency did not charge the company with knowingly committing the violations.
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