Monsanto misled investors by failing to disclose rebates to retailers who sold Roundup, so the Securities Exchange Commission in New York has imposed fines on the company and several executives.
The company will pay an $80 million because the commissio says Monsanto’s failure to disclose the rebates distorted the company’s earnings reports for 2009, 2010 and 2011.
Monsanto agreed to the penalty without admitting wrongdoing. It also agreed to hire a consultant to review the company’s financial reporting procedures for rebates.
Three accounting and sales executives will pay individual penalties ranging from $30,000 to $55,000.
Chief executive officer Hugh Grant also paid back $3,165,852 in bonuses tied to the company’s financial performance. Former chief financial officer Carl Casale repaid $728,843 in bonuses.
Regulators said they found no personal misconduct by Grant or Casale, but the company said securities rules required the repayment.
Monsanto has just lost a huge amount of public trust. If they will mislead on financial statements, will they mislead on product testing?