The company violated the Securities Exchange Act of 1934 regarding the provision of information to investors.
Securities and Exchange Commission (SEC) announced that a settlement had been reached with Keurig Dr. Pepper Inc. for violations of the Securities Exchange Act of 1934. The company has agreed to pay a $1.5 million fine and stop marketing their K-Cup pods as recyclable.
The SEC launched an investigation into the company after the two largest recycling companies in the U.S. decided not to accept K-Cups in their recycling programs, expressing doubts that K-Cups can be “effectively recycled” as Keurig claimed. The SEC found that Keurig did not disclose this feedback to its investors, which violated federal laws that protect investors from false claims.
“Public companies must ensure that the reports they file with the SEC are complete and accurate,” said Associate Director John Dugan of the Boston Regional Office. “When a company speaks to an issue in its annual report, they are required to provide information necessary for investors to get the full picture on that issue so that investors can make educated investment decisions.”
As the Lord Leads, Pray with Us…
- For SEC Chair Gary Gensler to seek God’s direction as he heads the commission.
- For U.S. federal officials as they work to ensure compliance with private industry standards and laws.
Sources: Reuters, Securities and Exchange Commission
