International Flavors & Fragrances Inc. (IFF) Reveals Improper Payments Made by Frutarom
According to the complaint, for alleged violations of the Securities Exchange Act of 1934 between May 7, 2018 and August 5, 2019, IFF announced its definitive agreement to acquire Frutarom for $1.7 billion on assertions that the merger would accelerate IFF’s growth and drive strong earnings and synergy potential. Following the merger, IFF reaffirmed the benefits of acquiring Frutarom in its fourth quarter and full year 2018 financial results, and even increased its 2019 revenue guidance based on its “record-setting sales,” which included Frutarom-related sales. Then, on August 5, 2019, IFF disclosed that Frutarom had “made improper payments to representatives of a number of customers” in Russia and Ukraine, which members of Frutarom’s senior management were aware of. As a result of Frutarom’s materially overstated financials, IFF had to reduce its 2019 financial guidance and lowered its earnings per share. On this news, IFF’s share price fell $22.56, or 16% per share, and continues to decline.
International Flavors & Fragrances Inc. (IFF) Shareholders Have Legal Options
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