UPS Fined $45 Million by SEC for Misrepresenting Freight Business Valuation

The SEC alleges UPS violated federal accounting standards, inflating the value of its freight division and misleading investors.

UPS has agreed to pay a $45 million penalty to settle SEC allegations of improper valuation of its freight division.
The SEC claims UPS misrepresented its earnings by failing to follow generally accepted accounting principles (GAAP).
The company allegedly relied on an external consultant's inflated valuation of $2 billion, ignoring internal analyses and sale negotiations valuing the unit much lower.
UPS sold its freight division to TFI International in 2021 for $800 million, significantly below the consultant's valuation.
As part of the settlement, UPS will implement compliance measures, including employee training and retaining a compliance consultant, while the SEC's broader investigation continues.