The Securities and Exchange Commission is reportedly investigating British alcoholic beverages firm Diageo under the claims that it attempted to improve its sales figures by providing excess inventory to distributors.
Diageo confirmed that it has received an inquiry from the SEC about its supply in the US, reported The Wall Street Journal.
Diageo spokeswoman was quoted by the publication as saying: "Diageo is working to respond fully to the SEC's requests for information in this matter."
By sending excess cases to distributors than they require may allow the alcoholic firm to report increased sales and shipments, say sources familiar with the matter.
Diageo's sales have been on the decline in the North American region since 2011.
Diageo produces spirits, beers and wines, including products such as Smirnoff vodka, Johnnie Walker Scotch whisky, Baileys liqueur and Guinness stout. With offices in around 80 countries, the alcoholic firm markets its products in around 180 countries.
