Kraft, former officials settle SEC charges for $62 million
Federal regulators said Friday that Kraft Heinz Co. will pay $62 million to settle charges of accounting wrongdoing that led the company to report overly rosy financial results, which were later corrected.
Two former senior executives of the food company agreed to pay civil penalties, the Securities and Exchange Commission said.
The SEC said that from late 2015 through 2018, Kraft boasted about cost savings that were actually unearned discounts and misleading reports about nearly 300 contracts with suppliers.
The company’s claims were widely picked up by Wall Street analysts, the SEC said, but in 2019 Kraft restated its financial results to correct $208 million in improperly recognized cost savings.
In 2019, Kraft restated results covering nearly three years and disclosed that it was being investigated by the SEC for misconduct by procurement employees.