Defendant Name:
The Kraft Heinz Co.
Defendant Type:
Public Company
SIC Code:
9999
CUSIP:
50075410
Initial Case Details
Legal Case Name
In the Matter of The Kraft Heinz Co., and Eduardo Pelleissone
First Document Date
03-Sep-2021
Initial Filing Format
Administrative Action
File Number
3-20523
Allegation Type
Issuer Reporting and Disclosure
AAER
4248
Violations Alleged
Additionally,
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Rule 12b-20 of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Sec 13(a) of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Rule 13a-1 of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Rule 13a-11 of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Rule 13a-13 of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Sec 13(b)(2)(A) of the Exchange Act.
Eduardo Pelleissone is alleged to have caused The Kraft Heinz Co.'s violation of Sec 13(b)(2)(B) of the Exchange Act.
Resolutions
First Resolution Date
03-Sep-2021
Related Documents:
33-10977
03-Sep-2021
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 September 3, 2021, the SEC instituted settled cease-and-desist proceedings against the Kraft Heinz Co. and Eduardo Pelleissone stating: "This matter concerns a multi-year expense management scheme by KHC's
procurement division to improperly reduce KHC's cost of goods sold and achieve cost savings that
were externally touted to the market and internally tied to performance-based targets. The
misconduct resulted in KHC reporting inflated earnings before interest, taxes, depreciation and
amortization ("EBITDA"), a key performance metric for investors."
2021-174
03-Sep-2021
Press Release--Administrative Proceeding
SEC Charges The Kraft Heinz Company and Two Former Executives for Engaging in Years-Long Account Scheme
The SEC stated that: "[It] charged The Kraft Heinz
Company with engaging in a long-running expense management scheme that resulted in the restatement of
several years of financial reporting. The SEC also charged Kraft's former Chief Operating Officer Eduardo
Pelleissone and its former Chief Procurement Officer Klaus Hofmann for their misconduct related to the scheme."
34-93703
02-Dec-2021
Administrative Proceeding
Extension Order
The Commission ordered that: "the Division's request for an extension of time until August 31, 2022 to submit a Proposed Plan of Distribution is granted."
34-93878
29-Dec-2021
Administrative Proceeding
Order Appointing Tax Administrator
The Commission ordered that: "Miller Kaplan . . . is appointed the Tax Administrator for the QSF in the above-referenced proceeding."
34-94380
08-Mar-2022
Administrative Proceeding
Order Appointing Fund Administrator and Setting Administrator's Bond Amount
The Commission stated: "It is hereby ordered that RFS is appointed as the fund administrator . . . and shall obtain a bond . . . in the amount of $62,314,211.31."
34-95277
14-Jul-2022
Administrative Proceeding
Notice of Proposed Plan of Distribution and Opportunity for Comment
The Commission stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of monies paid in the above-captioned matter."
Proposed Plan of Distribution
The Commission stated: "the Plan seeks to compensate investors who were harmed by the Respondents’ conduct described in the Order, in connection with a multi-year expense management scheme."
34-95702
08-Sep-2022
Administrative Proceeding
Order Extending Time to Enter an Order Approving or Disapproving Plan of Distribution
The Commission ordered "that . . . for good cause shown, the time for entering an order approving or disapproving the Plan is extended to December 30, 2022."
34-96578
23-Dec-2022
Administrative Proceeding
Order Approving Plan of Distribution
The Commission ordered that: "the Proposed Plan is approved, and the approved Plan of Distribution shall be posted simultaneously with this Order on the Commission's website at www.sec.gov."
Plan of Distribution
The Commission stated: "The Division of Enforcement submitted this Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission . . . This Plan provides for the distribution of a Fair Fund (the “Fair Fund”), comprised of disgorgement, prejudgment interest, and civil money penalties paid by The Kraft Heinz Co. (“KHC”) and Eduardo Pelleissone (collectively, the “Respondents”) in the above-captioned matter."
34-98398
14-Sep-2023
Administrative Proceeding
Order Approving Application of Fund Administrator for Payment of Fees and Expenses and Approval of Future Payment of Fees and Expenses
The Commission ordered that: "OFM pay the Fund Administrator’s fees and expenses of $10,488.75 from the Fair Fund in accordance with Rule 1105(e) of the Commission’s Rules.6 Further, OFM is authorized to pay, at the direction of an Assistant Director of the Office of Distributions, the fees and expenses of the Fund Administrator from the Fair Fund in accordance with Rule 1105(e) of the Commission’s Rules,7 so long as the total amount paid to the Fund Administrator, including the invoice to be paid, does not exceed the total amount of the approved cost proposal submitted by the Fund Administrator."
Other Defendants in Action:
