SEC may file charges against Dean Foods

Nov. 5, 2003
Dean Foods Co, the Dallas TX-based dairy processor, said Securities and Exchange Commission (SEC) regulators are considering civil charges against the
Dean Foods Co, the Dallas TX-based dairy processor, said Securities and Exchange Commission (SEC) regulators are considering civil charges against the company alleging that it assisted bankrupt Fleming Companies with questionable bookkeeping entries.

Regulators believe Dean provided Fleming with correspondence that allowed Fleming to characterize two payments made to it by Dean as current income rather than deferred revenue to be recognized over future periods.

The SEC has made no allegations about Dean's own financial statements. It said Dean expensed the payments, which totaled $2.7 million, when they were made in the second and third quarters of 2002.

Under SEC procedures, Dean can respond in writing before the agency makes a formal decision. The company said it is cooperating fully with the SEC and does not expect the matter to have any material impact on the company.

In related news, Dean's quarterly earnings surged, helped by a one-time gain from the sale of its frozen pre-whipped topping business. The firm reported third-quarter profit of $122.2 million, or 76 cents a share, up from $68.7 million, or 45 cents a share, a year earlier.

Third-quarter net sales totaled $2.3 billion in 2003, an increase of 3% over third-quarter 2002.

About the Author

from staff and wire reports

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Leveraging telematics to get the most from insurance

Fleet owners are quickly adopting telematics as part of their risk mitigation strategy. Here’s why.

Reliable EV Charging Solution for Last-Mile Delivery Fleets

Selecting the right EV charging infrastructure and the right partner to best solve your needs are critical. Learn which solution PepsiCo is choosing to power their fleet and help...

Overcoming Common Roadblocks Associated with Fleet Electrification at Scale

Fleets in the United States, are increasingly transitioning from internal combustion engine vehicles to electric vehicles. While this shift presents challenges, there are strategies...

Report: The 2024 State of Heavy-Duty Repair

From capitalizing on the latest revenue trends to implementing strategic financial planning—this report serves as a roadmap for navigating the challenges and opportunities of ...