Processing Magazine

Dean Foods under SEC review

November 6, 2006

Dean Foods Co., a maker of yogurt, soy milk, and other foods and beverages, recently said it was notified by that its stock options grants practices are under an informal review by the Securities and Exchange Commission, the Associated Press reports. The company said it will cooperate with the SEC''s investigation. Last week, Dean Foods said it has been reviewing its stock option grants over the past few months and does not believe there has been any inappropriate conduct. The company added that it did not believe it would need to restate results. Dean Foods is one of at least 152 companies that have launched internal investigations or are under scrutiny by federal regulators for possibly backdating stock option grants. The company also said last week it has been named in two shareholder derivative lawsuits that allege the company backdated stock options.