Diageo pays $5m fine over ‘misleading’ sales

The Securities and Exchange Commission (SEC) has fined Diageo US$5 million after its North American arm created a “misleading picture” of its financial results. According to the US securities regulator’s charges, in its 2014 and 2015 fiscal years, Diageo North America “pressured” distributors to buy excess inventory in order to meet internal sales targets in the face of declining market conditions. However, Johnnie Walker owner Diageo failed to disclose the excess stocks to investors, creating…

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