Hampton Creek Under SEC Inquiry for Product Buybacks

Source: Organic Authority

Vegan foods startup Hampton Creek Inc. is currently undergoing an informal inquiry by the U.S. Securities and Exchange Commission after purchasing its own vegan mayonnaise, Just Mayo, from stores without proper disclosure.

The inquiry will determine whether Hampton Creek Inc. improperly recognized revenue from purchases made with company money and may lead to enforcement action.

“We’re aware of the informal inquiry and we’ll be sharing the facts, as opposed to the inaccuracies reported by Bloomberg,” Hampton Creek Inc. founder and CEO Josh Tetrick told Bloomberg.

According to earlier reports from Bloomberg, this buyback may have begun as early as 2014. Hampton Creek claimed at the time that these purchases were made as part of a quality assurance program, but according to data supplied to Bloomberg by Tetrick, not all of the purchases were accounted for by this program.

Read more: http://www.organicauthority.com/hampton-creek-under-sec-inquiry-for-secret-in-store-buybacks/