ADM Must Defend Against Investor Claims of Accounting Issues (1)

Archer-Daniels-Midland Co. must face allegations that the agricultural giant’s accounting practices deceived investors on its nutrition business’ growth and financial controls, a federal judge ruled.

Shareholders sufficiently pleaded that certain then-executives knew or deliberately disregarded accounting fraud, given they built a compensation structure that benefited from it two years after it started, Judge Thomas M. Durkin said in an opinion for the US District Court for the Northern District of Illinois. He denied all motions to dismiss from the company, CEO Juan Luciano, and former leaders Wednesday.

ADM’s nutrition segment began accounting for intracompany food-product purchases below fair-market value in ...