When the SEC started its investigation in June 2009, Kraft Heinz restated its financial statements in its quarterly regulatory filings with the Commission. The food giant corrected a total of $208 million in cost savings arising from 295 transactions and it also corrected its adjusted EBITDA.
Additionally, the SEC alleged that Pelleissone and Hofmann ignored warnings signs that Kraft Heinz procument division’s employees were bypassing the company’s internal controls in connection with supplier contracts. Instead of correcting the problem, They allegedly negligently approved and failed to stop false and misleading supplier contracts.
The SEC asserted that Kraft and Heinz, Pelleissone, and Hoffmann violated negligence-based anti-fraud, reporting, books and records, and internal accounting controls provisions of the federal securities laws.
Details of the setllement
Kraft Heinz, Pelleissone, and Hoffman offered to settle with the SEC without admitting or denying the allegations against them.
