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?
