- Hain Celestial (HAIN +1.3%) settles charges from the SEC related to internal control weaknesses.
- The company was not charged a monetary penalty due to its "extensive" cooperation.
- SEC case details: "... between 2014 and 2016, sales personnel for The Hain Celestial Group , Inc. offered the company's two largest distributors incentives at the end of fiscal quarters to encourage the purchase of sufficient inventory for Hain to meet quarterly internal sales targets. The incentives offered by Hain included rights of return for products that spoiled or expired before they were sold to retailers, as well as cash incentives of up to $500,000, substantial discounts, and extended payment terms. According to the SEC's order, some of the incentives were agreed to orally and not documented, and others were documented only in email exchanges with the distributors. The SEC's order found that the company lacked sufficient policies and procedures to ensure the incentives were properly documented and accounted for and that Hain's finance department was not aware of the quarterly incentive practices until May 2016."
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