Case Summary

Archer-Daniels-Midland

NYSE: ADM

Case Details

  • Chow v. Archer-Daniels-Midland Company et al.
  • Class Period:April 30, 2020 - January 22, 2024
  • Date Filed:January 24, 2024
  • Jurisdiction:U.S. District Court, Northern District of Illinois
  • Docket Number: 1:24-cv-00634
  • Lead Plaintiff Deadline: March 25, 2024
Days Left to
Seek Plaintiff
33

Overview

A class action lawsuit has been filed against Archer-Daniels-Midland Company (“ADM” or the “Company”) (NYSE: ADM) and certain of the Company’s current and former senior executive officers alleging violations of the Securities Exchange Act of 1934. The lawsuit is brought on behalf of all persons and entities who purchased or otherwise acquired ADM common stock between April 30, 2020, and January 22, 2024, both dates inclusive (the “Class Period”) and investors have until March 25, 2024, to seek appointment as lead plaintiff of the Archer-Daniels-Midland class action lawsuit.

ADM is an agricultural supply chain manager and processor that operates through three main business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Nutrition segment is engaged in the manufacturing, sale, and distribution of a range of ingredients and solutions, including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, and other specialty food and feed ingredients.

The lawsuit alleges that over the past decade, ADM has spent billions of dollars trying to expand its Nutrition business to protect against commodity price volatility in its legacy agricultural commodities trading business. It is also alleged that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material facts, about the performance and prospects of ADM’s Nutrition segment and its accounting practices. Specifically, Defendants made positive statements about the Nutrition segment as a future profit-driver for the Company, with the ability to capitalize on healthier eating trends and rising consumer demand for natural ingredients and flavoring.

Defendants also created the impression that the Nutrition segment’s growth would provide more diversification and earnings stability for company. Unbeknownst to investors, however, the Nutrition segment’s ostensibly impressive growth was inaccurate and subject to improper accounting practices, and Defendants also downplayed the segment’s eventual decline in 2023. As ADM was aggressively acquiring companies to expand its capabilities in Nutrition, investors were under the impression that the segment was growing rapidly.

Defendants’ accounting practices for the segment misrepresented its true financial results and prospects, including its operating profits (“OP”). During the Class Period, Defendants were incentivized to create the appearance of a diversified business by inflating the performance of the Nutrition segment, and the Individual Defendants were further incentivized by stock awards that were directly tied to the performance of the Nutrition segment from 2020 to 2022. As a result, ADM’s business and prospects were much worse than represented by Defendants, causing the price of ADM common stock to trade at artificially inflated levels during the Class Period.

On January 21, 2024, ADM announced that it had placed its CFO Vikram Luther on leave effective immediately. The Company said that Luther’s leave is pending an ongoing investigation being conducted by outside counsel for ADM and the Board’s Audit Committee regarding certain accounting practices and procedures with respect to ADM’s Nutrition segment, including as related to certain intersegment transactions. The Company also revealed that its investigation was initiated in response to its receipt of a voluntary document request by the SEC. As a result, ADM delayed its Q4 and FY 2023 earnings release and withdrew its outlook for the Nutrition segment. On this news, the price of ADM common stock declined by $16.23 per-share, or approximately 24%, from $68.19 per-share to close at $51.69 on January 22, 2024, wiping out approximately $8.8 billion of ADM’s market value.

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If you purchased or otherwise acquired Archer-Daniels-Midland (NYSE: ADM) common stock between April 30, 2020, and January 22, 2024, both dates inclusive, and suffered substantial losses, and you wish to serve as lead plaintiff in this lawsuit, we encourage you to submit your information to DiCello Levitt LLP via the form on this page. 

You can also contact DiCello Levitt partner Brian O’Mara by calling (888) 287-9005 or at investors@dicellolevitt.com. 

The deadline to apply to the Court to serve as a lead plaintiff in the Archer-Daniels-Midland lawsuit is March 25, 2024.

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