More on Diageo

Yesterday, news broke that the Securities and Exchange Commission (SEC) has begun an inquiry into whether Diageo shipped excess inventory to US distributors - aka channel stuffing [see WSD 07-23-2015 ]. Note, many headlines say Diageo is being investigated, but that's technically not true. An informal inquiry is when the SEC interviews witnesses, examines brokerage records, and reviews trading data. An inquiry may or may not lead to a formal investigation in which the agency may compel witnesses to testify,