CHICAGO, january 28, 2026 – Archer Daniels Midland (ADM), a global agricultural giant, is facing renewed scrutiny after reaching a $40 million settlement with the Securities and Exchange Commission (SEC) over allegations of misleading investors.The company, once at the center of a notorious price-fixing scandal dramatized in the film The Informant!, is now embroiled in controversy surrounding its accounting practices.
Accounting Issues Surface in Nutrition Segment
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The SEC inquiry, spanning nearly three years, alleged that ADM improperly boosted the reported performance of its nutrition segment-which produces ingredients for both human and animal food-by shifting profits from other parts of the business. Regulators claimed these maneuvers involved non-market “intersegment” sales and other adjustments designed to artificially inflate earnings. Specifically, the SEC alleged ADM was attempting to effectively transferring profits to the nutrition segment to meet growth projections of 15% to 20% annually.
Junaid zubairi of Vedder,representing Luthar,stated the allegations are “meritless and the product of a one-sided complaint that omits notable exculpatory facts.” Zubairi noted that an internal investigation commissioned by ADM, as disclosed in a March 25, 2025, proxy statement, did not find Luthar engaged in improper conduct. “The SEC unjustly seeks to hold Mr. Luthar accountable for long-standing business practices at ADM,” Vedder said, adding that the transactions were “obvious and were considered, approved, and implemented in good faith.” luthar, who joined ADM in 2004, denies the charges and intends to defend himself in court.
ADM’s Response and Internal Changes
ADM, ranked No. 50 on the Fortune 500, initiated an internal investigation, voluntarily reported its findings to the SEC, and implemented new internal accounting controls and policy amendments. The company corrected prior-period errors in March 2024 and restated its 2023 Form 10-K and first and second quarter 2024 Forms 10-Q in November 2024 to address historical segment reporting inaccuracies. “ADM has implemented significant changes to its financial leadership team and financial controls,” the company stated. Monish Patolawala has served as EVP and CFO of ADM since August 1,2024,previously holding the same role at 3M.
Juan Luciano, chair of the board, president, and CEO, expressed ADM’s desire to “put these matters behind the company,” emphasizing strengthened internal controls, financial reporting, and a commitment to transparency and stakeholder trust.
Previously, Luthar was placed on administrative leave in January 2024, and resigned in April 2024 as a Department of Justice criminal investigation into ADM’s accounting practices unfolded. The DOJ ultimately closed its criminal investigation without filing charges.
Nutrition Segment: A Key Strategy
ADM’s nutrition business has been a central component of the company’s growth strategy. In 2014, ADM acquired European natural-ingredients maker Wild Flavors for $3 billion, aiming to diversify beyond traditional grain and oilseed trading. However, weakening demand and inconsistent performance have hindered the segment’s progress, contributing to the current SEC case.
- ADM settled with the SEC for $40 million over accounting allegations.
- Three former ADM executives were charged, with one still facing charges.
- The controversy centers on the performance of ADM’s nutrition segment.
- ADM has implemented new financial controls and leadership changes.
