Kraft, former officials settle SEC charges for $62 million
WASHINGTON (AP) — Kraft Heinz Co. is agreeing to pay $62 million to settle charges of improper accounting of what it once claimed were cost savings. Two former senior executives have agreed to pay civil penalties. The Securities and Exchange Commission said Friday that from late 2015 through 2018, Kraft boasted about cost savings that were actually unearned discounts and gave false reports about contracts with suppliers. The claims were widely picked up by Wall Street analysts, but in 2019 Kraft restated its financial results to correct $208 million in improperly recognized cost savings. The SEC says the company’s former chief operating officer will pay a $300,000 civil penalty and the former chief procurement officer will pay $100,000.