In the Complaint, the SEC stated: "This case involves a financial reporting fraud at Marrone Bio Innovations, Inc. ('MBI' or the 'Company'), a Davis, California based company that manufactures and markets agricultural products and went public in August 2013. As the result of a scheme by the Company's Chief Operating Officer and head of sales Hector M. Absi, Jr., MBI deceived investors into thinking that it was a thriving, growing business that was achieving increases in revenue year-over-year. Beginning in March 2013, at Absi's direction, MBI offered its distributors various sales concessions, primarily the right to return any unsold product, in order to ensure MBI met its projection that it would double its revenue in 2013. Absi concealed these concessions from MBI's finance and accounting personnel, leading the Company to recognize revenue on these transactions contrary to applicable accounting principles and the Company's stated revenue recognition policies."

On February 17, 2016, the SEC announced that it "charged biopesticide company Marrone Bio Innovations and a former executive with inflating financial results to meet projections it would double revenues in its first year as a public company." The SEC noted that the U.S. Attorney's Office for the Eastern District of California announced criminal charges on the same day against Marrone Bio's former chief operating officer Hector M. Absi Jr. for his role in Marrone Bio's violations. The SEC also noted: "As required by Section 304(a) of the Sarbanes-Oxley Act, Marrone Bio CEO Pamela G. Marrone has reimbursed the company $15,234 and former CFO Donald J. Glidewell will reimburse the company $11,789 for incentive-based compensation they received following the filing of Marrone Bio's misstated financial statements. They weren't charged with any misconduct."

On March 7, 2016, the SEC issued a final judgment as to defendant Marrone Bio Innovations, Inc.