Kraft's Relations With Fleming Target of SEC Probe
WASHINGTON - Kraft Foods Inc said yesterday it is the subject of an SEC probe related to its dealings with bankrupt grocery distributor Fleming Cos, AFP reports.
Kraft announced in a statement that it had received notice of the probe from the SEC and that it could result in a "civil injunctive action" being filed against the largest U.S. food producer.
"The notice alleges that company employees signed documents requested by the (bankrupt) Fleming Companies, which Fleming used in order to accelerate its revenue recognition," Kraft said.
Kraft said it believes it is innocent of possible charges, but that it will fully cooperate with the SEC inquiry.
The company said it booked its transactions with Fleming properly and in accordance with U.S. accounting laws.
"The (SEC) notice does not contain any allegations or statements regarding Kraft?s accounting for its transactions with Fleming," Kraft said.
Earlier yesterday Dean Foods Co. also announced that it is the subject of a similar SEC investigation.
Kraft announced in a statement that it had received notice of the probe from the SEC and that it could result in a "civil injunctive action" being filed against the largest U.S. food producer.
"The notice alleges that company employees signed documents requested by the (bankrupt) Fleming Companies, which Fleming used in order to accelerate its revenue recognition," Kraft said.
Kraft said it believes it is innocent of possible charges, but that it will fully cooperate with the SEC inquiry.
The company said it booked its transactions with Fleming properly and in accordance with U.S. accounting laws.
"The (SEC) notice does not contain any allegations or statements regarding Kraft?s accounting for its transactions with Fleming," Kraft said.
Earlier yesterday Dean Foods Co. also announced that it is the subject of a similar SEC investigation.