By Dave Michaels

Archer Daniels Midland agreed to pay $40 million to settle regulatory claims that it defrauded investors by artificially boosting profits at its nutrition business, capping off a scandal that led to the departure of several executives and prompted a huge stock drop when it was disclosed.

The case focuses on a period in 2021 and 2022 when ADM's then-chief financial officer, Vikram Luthar, directed accounting adjustments that effectively transferred profits from other ADM segments to the nutrition business, which executives had touted as the company's "engine for future growth," the Securities and Exchange Commission said.

ADM settled the allegations without admitting or denying wrongdoing. The company's stock dropped 24% the day after it disclosed its own internal investigation into the accounting practices. The agriculture giant said Tuesday that prosecutors had closed a criminal investigation of the company without filing charges.

"We are pleased to put these matters behind the company," ADM Chief Executive Juan Luciano said. "Looking ahead, we remain committed to operating with transparency and integrity and upholding the trust of our stakeholders every day."

The SEC sued Luthar, the former CFO, in Chicago federal court, saying he directed the fraud and benefited from making the nutrition business appear healthier than it was. Luthar sold over $1.8 million in ADM shares when the price was inflated by the nutrition segment's misleading performance, the SEC said.

The commission is seeking a court order that requires Luthar to pay back his financial gains as well as a financial penalty. Regulators also want to bar him from serving as an officer or director of a public company.

An attorney for Luthar, who resigned from ADM in 2024, said he would fight the allegations.

Write to Dave Michaels at dave.michaels@wsj.com

(END) Dow Jones Newswires

January 27, 2026 19:10 ET (00:10 GMT)

Copyright (c) 2026 Dow Jones & Company, Inc.