US: American Italian Pasta settles finance probe

By: just-food.com | 16 September 2008

American Italian Pasta Co. (AIPC) has agreed to pay the US government US$7.5m to settle a three-year investigation into financial malpractice at the company.

AIPC, the largest dry pasta maker in North America, has settles two outstanding cases, one with the Department of Justice (USAO) and the Securities and Exchange Commission.

Under its settlement with the USAO, AIPC agreed to pay the fine and agreed to acknowledge responsibility for the conduct of its past executives.

AIPC's deal with the SEC will see the company pay no financial penalty although it has agreed to a "consent injunction requiring future compliance with federal securities laws".

The agreements follow last October's US$25m settlement with shareholders, who brought a lawsuit against the company for violating securities laws.

"Today's announcement brings a welcome close to an unfortunate chapter in the otherwise proud history of our company," said Jack Kelly, AIPC president and CEO yesterday (15 September).

Sectors: Baby food, Chilled foods

Companies: American Italian Pasta