Archer-Daniels-Midland Company ("ADM") is a multinational food processing and commodities trading corporation that engages in the production of oilseeds, corn, wheat, cocoa, and other agricultural commodities.

A federal securities fraud class action complaint that accused Archer-Daniels-Midland Company (NYSE: ADM) and certain of its officers of utilizing improper accounting practices has survived a motion to dismiss.

According to the underlying securities fraud Complaint ADM, via certain of its officers, 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, the complaint alleges 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, and that Defendants created the impression that the Nutrition segment’s growth would provide more diversification and earnings stability for ADM. However, the Complaint alleges that 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. The Complaint claims that Defendants' actions caused the price of ADM common stock to trade at artificially inflated levels during the Class Period.

On March 12, 2025, the Court issued an Order denying Defendants' Motions to Dismiss the complaint. In so doing, the Court stated:

“Plaintiffs have made strong allegations of motive, public statements, the core nature of the Nutrition segment, and the straightforward nature of the fraud. These allegations combined with the suspicious departures and government investigations create a strong inference of scienter. Defendants cite no case with allegations this robust where a court granted a motion to dismiss.”

The Court further stated that Court finds that the “change in compensation structure makes it more likely that the Individual Defendants, and by extension ADM itself, were aware of the fraud” and “this series of events is highly suspicious and can hardly be described as “generic.” Common sense says that the change in incentive structure is as close as circumstantial evidence can be to direct evidence that Defendants knew about the accounting misstatements.”

If you purchased ADM shares prior to April 30, 2020, and still hold shares today, you are encouraged to contact Joshua Grabar at [email protected], or call 267-507-6085.  You may be able to seek corporate reforms, the return of funds back to the company, and a court approved incentive award at no cost to you whatsoever.