Archer-Daniels-Midland Company
Exchange: NASDAQ
Ticker: ADM
Date of Filing: 01/25/2024
Court: Northern District of Illinois
Filing Deadline

03/25/2024

TWERSKY LAW GROUP Notifies Archer-Daniels-Midland Company (ADM) Investors of Class Action

Archer-Daniels-Midland – Twersky Law Group, a highly regarded and reputable law firm based in New York, wishes to inform investors about a significant development in the form of a class action lawsuit against Archer-Daniels-Midland Company (“Archer-Daniels-Midland” or “the Company”) (NASDAQ: ADM) and certain officers of the company. This lawsuit has been filed on behalf of all individuals and entities that purchased or otherwise acquired Archer-Daniels-Midland securities from April 30, 2020 through January 22, 2024 (the “Class Period”). Investors who acquired Archer-Daniels-Midland securities during this defined timeframe are strongly encouraged to participate in this case by contacting atara@twerskylawgroup.com. The deadline to file a motion for appointment of lead plaintiff is March 25, 2024.

The fundamental objective of this class action lawsuit is to recover for the benefit of investors who purchased Archer-Daniels-Midland securities during the Class Period, the losses they sustained as a consequence of the misleading statements made by Defendants in violation of the federal securities laws.

 

ALLEGATIONS AGAINST ARCHER-DANIELS-MIDLAND

It is 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 ADM. 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. As alleged, 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.

 

ABOUT ARCHER-DANIELS-MIDLAND

  • Archer-Daniels-Midland Company (ADM) is a global agribusiness and commodities trading corporation founded in 1902. Headquartered in Chicago, Illinois, ADM processes agricultural commodities, produces food ingredients, and is a major player in biofuels. The company operates worldwide, engaging in commodities trading and diversifying into specialty food ingredients, animal nutrition, and industrial products. ADM places a growing emphasis on sustainability initiatives, focusing on responsible sourcing and environmental impact reduction. As a publicly traded company on the New York Stock Exchange (NYSE), ADM’s financial performance is subject to market conditions. For the latest information, refer to the company’s official website and financial reports.

 

JOIN THIS CASE

It is important to note that a class action lawsuit has already been filed in connection with these allegations. Therefore, for those individuals who suffered financial losses in their investments in Archer-Daniels-Midland during the Class Period, there is a limited opportunity to seek appointment as a lead plaintiff. This process entails requesting the Court to designate them as the primary representative on behalf of the entire class. The deadline for submitting such a request is March 25, 2024. It is important to emphasize that while becoming a lead plaintiff can offer certain advantages, participation in the recovery process and the potential for financial compensation does not mandate serving as a lead plaintiff.

Twersky Law Group, a distinguished legal firm renowned for its attorneys expertise in handling securities fraud class actions and shareholder derivative suits, who have a long-standing track record of successfully recovering significant sums of money for investors nationwide. With an unwavering commitment to seeking justice for their clients, the firm’s attorneys are resolute in pursuing fair compensation on behalf of those affected by alleged securities law violations. As with any legal matter, it is essential to understand that this announcement constitutes attorney advertising. Past case outcomes and results achieved do not guarantee similar outcomes in this particular case.



DOCUMENTS


COMPLAINT

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