US dairy company Dean Foods has said it is in settlement talks with the US Securities and Exchange Commission over an investigation into the company’s transactions with bankrupt food distributor Fleming.

Dean said it does not expect the investigation or the settlement to have a material adverse effect on the company, reported Reuters.

The investigations surround claims that employees at several US food companies, including Dean, Kraft and PepsiCo’s Frito-Lay, signed documents allowing Fleming to book revenue as current income in order to inflate its revenue.

The SEC is investigating Fleming over its vendor trade practices, accounting for sales transactions and presentation of earnings.