Defendant Name: Diageo plc

Defendant Type: Public Company
SIC Code: 2084
CUSIP: 25243Q20

Initial Case Details

Legal Case Name In the Matter of Diageo plc
First Document Date 19-Feb-2020
Initial Filing Format Administrative Action
File Number 3-19701
Allegation Type Issuer Reporting and Disclosure

Violations Alleged

Exchange Act
• Rule 12b-20
• Sec 13(a)
• Rule 13a-1
Securities Act
• Sec 17(a)(2)
• Sec 17(a)(3)

Resolutions

First Resolution Date 19-Feb-2020
Headline Total Penalty and Disgorgement $5,000,000

Related Documents:

33-10756 19-Feb-2020 Administrative Proceeding
Order Instituting Cease-and-Desist Proceedings, Pursuant to Section 8A of the Securities Act of 1933 and Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order
On February 19, 2020, the SEC instituted settled cease and desist proceedings against Diageo plc. The SEC stated: "In its fiscal years 2014 and 2015, Diageo failed to make required disclosures of known trends and uncertainties, thereby rendering its required periodic filings materially misleading to investors with respect to its financial results. During those periods, employees at Diageo’s largest and most profitable subsidiary—Diageo North America, Inc. (“DNA”)—pressured distributors to buy products in excess of demand to meet performance targets in a flagging market. As a result, distributors in North America held substantial unneeded inventory, which was a known trend or uncertainty: the continued selling over demand was unsustainable because it was likely that distributors would purchase less product in future periods. Diageo’s periodic filings did not disclose these known trends and uncertainties to investors."
2020-36 19-Feb-2020 Press Release--Administrative Proceeding
SEC Charges Global Alcohol Producer with Disclosure Failures
The SEC "announced charges against alcohol producer Diageo plc for failing to make required disclosures of known trends relating to the shipments of unneeded products by its North American subsidiary to distributors. Diageo has agreed to pay $5 million to settle the action."