NEW YORK, Feb. 07, 2024 (GLOBE NEWSWIRE) — Attorney Announcement – Bronstein, Gewirtz & Grossman, LLC, a nationally recognized law firm, notifies investors that a class action lawsuit has been filed against Archer-Daniels-Midland (“ADM” or “ Company) (NYSE: ADM) and certain of its officers.
This lawsuit seeks to recover damages against the Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired ADM securities between April 30, 2020 and January 22, 2024, inclusive (the “Class Period”). These investors are encouraged to join this cause by visiting the company’s website: bgandg.com/ADM.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, about the performance and prospects of ADM’s Nutrition segment and its accounting practices. Specifically, the defendants made positive statements about the nutrition segment as a future profit driver for the company with the ability to capitalize on healthy eating trends and rising consumer demand for natural ingredients and flavors. The defendants also created the impression that growth in the nutrition sector would provide greater diversification and earnings stability for ADM.
However, unbeknownst to investors, the apparently impressive growth in the Nutrition segment was inaccurate and subject to improper accounting practices, and the Defendants also downplayed the eventual decline of the segment in 2023. As ADM was aggressively acquiring companies to expand its Nutrition capabilities Investors were under the impression that this sector was growing rapidly. As alleged, Defendants’ accounting practices in this sector misrepresented its true financial results and prospects, including its operating profits (“OP”). During the Class Period, the Defendants were incentivized to create a diversified business profile by inflating the performance of the Nutrition Segment, and the Individual Defendants were further incentivized by stock awards that were directly linked to the performance of the Nutrition Segment from 2020 to 2022. As a result, the Business ADM and its prospects are significantly worse than defendants represent, resulting in the price of ADM’s common stock trading at artificially inflated levels during the Class Period.
On January 21, 2024, ADM announced that it had placed its CFO Vikram Luther on leave, effective immediately. The company said Luther’s leave “pending an ongoing investigation by ADM’s outside counsel and the Audit Committee of the Board of Directors regarding certain accounting practices and procedures with respect to ADM’s Nutrition segment, including with respect to certain intersegment transactions.” The company also disclosed that its investigation was initiated in response to its receipt of a voluntary document request by the Securities and Exchange Commission. As a result, ADM delayed the release of fourth-quarter and fiscal 2023 earnings and withdrew its outlook for the nutrition sector.
On this news, the price of ADM’s common stock fell $16.23 per share, or approximately 24%, from $68.19 per share to close at $51.69 on January 22, 2024, clearing approximately $8.8 billion. USD of ADM’s market capitalization.
A class action lawsuit has already been filed. If you would like to review a copy of the complaint, you may visit the firm’s website: bgandg.com/ADM or you may contact Peretz Bronstein, Esq. Or our law clerk and client relations manager, Yael Nathanson of Bronstein, Gewirtz & Grossman, LLC at 332-239-2660. If you suffer a loss in an ADM, you have until March 25, 2024 to ask the court to appoint you as lead plaintiff. Your ability to participate in any recovery does not require that you serve as lead plaintiff.
There is no cost to you
We represent investors in class actions on a contingency fee basis. This means that we will ask the court to reimburse us for out-of-pocket expenses and attorney fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Goertz and Grossman:
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud and shareholder derivative litigation. Our firm has recovered hundreds of millions of dollars for investors nationwide.
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Bronstein, Goertz & Grossman, LLC
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