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Class Action Lawsuits Filed Against ADM for Alleged Securities Fraud

Investors seek recovery following significant stock price drop due to investigation into accounting practices.

Overview

  • A series of class action lawsuits have been filed against Archer-Daniels-Midland Company (ADM) for alleged securities fraud and misleading accounting practices.
  • The lawsuits cover investors who purchased ADM securities between April 30, 2020, and January 22, 2024, with a lead plaintiff deadline set for March 25, 2024.
  • ADM's CFO Vikram Luthar was placed on administrative leave due to an ongoing investigation into the company's accounting practices, particularly in its Nutrition segment.
  • The investigation was initiated in response to a voluntary document request by the SEC, leading to a delay in ADM's Q4 and FY 2023 earnings release and withdrawal of its outlook for the Nutrition segment.
  • Following the announcement, ADM's stock price fell significantly, wiping out approximately $8.8 billion of the company's market value.