Monsanto To Pay $80 Mln Civil Penalty - Quick Facts

(RTTNews) - The SEC announced that Monsanto Company (MON) has agreed to pay an $80 million penalty to settle charges that it violated accounting rules and misstated company earnings as it pertained to its flagship product Roundup. Three accounting and sales executives also agreed to pay penalties to settle charges against them.

The SEC investigation looked into the financial reporting of the company's customer incentive programs related to glyphosate products in fiscal years 2009, 2010 and 2011. Monsanto will also retain a consultant to conduct a review of the company's financial reporting of customer incentive programs for its crop protection business.

SEC Chair Mary Jo White, said: "This type of conduct, which fails to recognize expenses associated with rebates for a flagship product in the period in which they occurred, is the latest page from a well-worn playbook of accounting misstatements."

The SEC stated that its investigation found no personal misconduct by Monsanto CEO Hugh Grant and former CFO Carl Casale, who reimbursed the company for cash bonuses and certain stock awards they received during the period when the company committed accounting violations.