Defendant Name: Monsanto Company

Defendant Type: Public Company

Document Reference: 2016-25

Document Details

Legal Case Name In the Matter of Monsanto Company, Sara M. Brunnquell, CPA, Anthony P. Hartke, CPA, and Jonathan W. Nienas
Document Name Monsanto Paying $80 Million Penalty for Accounting Violations
Document Date 09-Feb-2016
Document Format Administrative Proceeding
File Number 3-17107
Allegation Type Issuer Reporting and Disclosure
Document Summary On February 9, 2015, the SEC issued a press release in which the SEC "announced that St. Louis-based agribusiness Monsanto Company agreed to pay an $80 million penalty and retain an independent compliance consultant to settle charges that it violated accounting rules and misstated company earnings as it pertained to its flagship product Roundup. Three accounting and sales executives also agreed to pay penalties to settle charges against them."

Disgorgement & Penalty Information

Resolutions
Compliance Related Independent Consultant

Related Documents:

33-10037 09-Feb-2016 Administrative Proceeding
Order Instituting Administrative and Cease-and-Desist Proceedings Pursuant to Section 8A of the Securities Act of 1933, Sections 4C and 21C of the Securities Exchange Act of 1934, and Rule 102(e) of the Commission's Rules of Practice, Making Findings and Imposing Remedial Sanctions and a Cease-and-Desist Order
On February 9, 2016, the SEC instituted settled administrative and cease-and-desist proceedings against Monsanto Company, Sara M. Brunnquell, CPA, Anthony P. Hartke, CPA, and Jonathan W. Nienas. According to the SEC: "Monsanto is an agricultural seed and chemical company that manufactures and sells glyphosate, a herbicide, under the trade name 'Roundup.' During fiscal years 2009, 2010, and 2011, Monsanto improperly accounted for millions of dollars of rebates offered to Roundup distributors and retailers in the U.S. and Canada to incent them to purchase Roundup. Monsanto also improperly accounted for rebate payments to Roundup customers in Canada, France, and Germany as selling, general, and administrative expenses ('SG&A') rather than rebates, which boosted Roundup gross profit in those countries. Monsanto did not have sufficient internal accounting controls to identify and properly account for rebate payments promised to customers. As a result, Monsanto materially misstated its consolidated earnings, and its revenues and earnings for its Roundup business lines, in its periodic reports filed with the Commission for fiscal years 2009, 2010, and 2011. As a result of the improper accounting, Monsanto met consensus earnings-per-share analyst estimates for fiscal year 2009."