American Dairy announces end of accounting investigation

American Dairy said Monday (Jun 22) that regulators have completed the investigation of its accounting and no enforcement action will be taken.

The Securities and Exchange Commission began an information accounting investigation at American Dairy in 2007.

American Dairy CEO Leng You-Bin said the company believes the termination of the investigation marks an important milestone in efforts to restore investors' confidence in the firm.

Shares of American Dairy fell US$3.74 to close at US$38.34 on Monday before the termination of the investigation was announced. After the announcement was made, the stock gained 16 cents to US$38.50.

Beijing-based American Dairy is one of the leading producers and distributors of infant formula, milk powder and soy, rice and walnut products in China.