Defendant Name:
Diageo plc
Defendant Type:
Public Company
SIC Code:
2084
CUSIP:
25243Q20
Document Reference:
33-10756
Document Details
Legal Case Name
In the Matter of Diageo plc
Document Name
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
Document Date
19-Feb-2020
Document Format
Administrative Proceeding
Allegation Type
Issuer Reporting and Disclosure
Document Summary
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."
Disgorgement & Penalty Information
Resolutions
Cease and Desist Order
Monetary Penalties:
Civil Penalty
Individual:
$5,000,000.00
Shared:
