Continued Investigation of Archer-Daniels-Midland by Former Louisiana AG Raises Concerns

Continued Investigation into Archer-Daniels-Midland Company

In an ongoing story that has captured significant attention, Charles C. Foti, Jr., a former Attorney General of Louisiana and a partner at Kahn Swick & Foti, LLC (KSF), announced the continuation of an investigation into the Archer-Daniels-Midland Company (ADM). This inquiry has been set against the backdrop of serious allegations regarding accounting practices related to the company’s Nutrition segment.

The Origin of the Investigation

The investigation began when ADM revealed on January 21, 2024, that its Chief Financial Officer was placed on leave. This was described as pending an ongoing investigation led by outside legal counsel for ADM and the Board of Directors’ Audit Committee, focusing on specific accounting practices and procedures. The matter arose as the result of a voluntary document request from the Securities and Exchange Commission (SEC), which prompted ADM to delay its earnings release for the fourth quarter and full fiscal year of 2023. Furthermore, the company withdrew its expectations for its Nutrition segment amid these developments.

In the ensuing weeks, ADM made headlines again as the company revised six years’ worth of financial statements pertinent to its Nutrition segment. Following this, on February 5, 2024, it was disclosed that the U.S. Department of Justice had initiated a criminal investigation into ADM’s accounting practices. In connection with this probe, grand jury subpoenas were issued to certain current and former employees of the company.

Legal Actions and Financial Irregularities

As the investigation unfolded, ADM faced a barrage of legal hurdles, including a securities class action lawsuit that accused the company and its executives of failing to disclose critical information during the class period, thereby violating federal securities laws. The lawsuit is still active and adds another layer of complexity to ADM’s legal tribulations.

Recent disclosures from the company also indicated significant cuts to its profit outlook for 2024, which adds to the chorus of concerns regarding its financial integrity. In light of this, ADM has also amended previous financial statements following the identification of further accounting irregularities.

Focus of Kahn Swick & Foti’s Investigation

Charles C. Foti, Jr. and his team at KSF are examining whether the actions of ADM's officers and directors constituted a breach of their fiduciary duties to shareholders or if they violated any state or federal laws. This investigation raises pressing questions about corporate governance and the responsibilities of executives in public companies.

Foti emphasized the importance of transparency and accountability, stating that the probe aims to shed light on the company's internal practices and ensure that stakeholders are properly informed.

Call to Shareholders

KSF has reached out to the public, particularly long-term holders of ADM shares, inviting them to provide any information that may assist in the ongoing investigation. The firm encourages shareholders to discuss their legal rights, noting that their consultation comes at no cost. Interested parties can contact KSF via phone or email to learn more about the investigation’s progress and the implications for shareholders.

About Kahn Swick & Foti, LLC

KSF is noted as one of the leading boutique law firms specializing in securities litigation in the United States. Comprising a team that includes former public officials such as Charles C. Foti, Jr., the firm has represented a diverse clientele, ranging from institutional investors to individuals, in recovering investment losses caused by corporate fraud or misconduct. With offices strategically located across states like New York, California, and Louisiana, KSF is well-positioned to tackle complex legal challenges.

This investigation into ADM is not just about securing justice for shareholders; it’s also a stark reminder of the obligation public companies have to uphold ethical and transparent operations. As the inquiry progresses, stakeholders will be watching closely to see how ADM navigates these turbulent waters and what repercussions may occur in the long run.

For more information about KSF and its services or to follow the ongoing developments related to ADM, you can visit their official site at https://www.ksfcounsel.com/cases/nyse-adm/.