Liz Soltan recently wrote for Bloomberg Law News, analyzing the SEC’s settlement with Keurig Dr. Pepper. The settlement alleges Keurig made inaccurate statements about the recyclability of its K-cup pods. Keurig paid a $1.5 million civil penalty. Liz’s article was also included in the Daily Update email from Securities Docket.

Keurig stated in its public filings to the SEC in 2019 and 2020 that testing “validate[d] that [K-Cup pods] can be effectively recycled.” However, Keurig had heard from two major American recycling companies that they could not recycle K-cup pods in normal curbside recycling. According to the settlement, Keurig did not disclose that information.

The Keurig case shows that the SEC continues to pursue enforcement actions against companies that mislead the public about their Environmental, Social, and Governance (“ESG”) commitments. That interest continues despite the recent dissolution of the SEC’s ESG Task Force, which was created in 2021.

The ESG Task Force has worked on several large and notable settlements. One involved allegations that a Brazilian mining company falsely claimed its bridges met international-safety standards. One of the company’s bridges broke and killed 270 people. Another case alleged that, contrary to what it told investors, a Deutsche Bank subsidiary did not implement an ESG-vetting process for evaluating investments.

As investors are increasingly concerned about putting their money behind companies that are responsibly handling ESG issues, SEC enforcement in the realm of ESG remains crucial.

If you have information about greenwashing, environmental fraud, or other ESG-related securities fraud, contact Whistleblower Partners for a free consultation.