Popular coffee capsule company Keurig will have to pay a $1.5 million penalty as the Securities and Exchange Commission (SEC) claims it made “inaccurate statements regarding recyclability of K-Cup beverage pods.” The SEC claims that Kuerig stated in annual reports that their pods could be effectively recycled. Meanwhile, the two largest recycling companies “expressed significant concerns to Keurig regarding the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept them for recycling.”
Kuerig, without admitting or denying the findings, agreed to a cease-and-desist order and to pay a civil penalty of $1.5 million.
John T. Dugan, Associate Director of the Boston Regional Office, commented:
“When a company speaks to an issue in its annual report, they are required to provide information necessary for investors to get the full picture on that issue so that investors can make educated investment decisions.”
Year to date, shares in KDP or Kuerig Dr. Pepper are up about 11.87%.