Keurig to pay $1.5 million fine over pod recycling claims, SEC says Reuters

WASHINGTON (Reuters) – Keurig Dr Pepper Inc has agreed to pay a $1.5 million fine to settle allegations by the U.S. Securities and Exchange Commission that the beverage company made inaccurate statements about the recyclability of its K capsules -Cup, the regulatory authority said on Tuesday.

In fiscal years 2019 and 2020, Keurig said tests confirmed the K-Cup pods could be “effectively recycled,” but did not disclose that two of the largest recycling companies in the U.S. have said they do not plan to accept because it is not commercially feasible, the SEC said in a statement.

Representatives for Keurig, which did not admit or deny the SEC’s findings, did not immediately respond to requests for comment.

The SEC found that by omission, Keurig violated key provisions of securities laws designed to protect investors. In addition to the civil penalty, the company agreed to a cease and desist order, the regulator said.