Diageo (LON:DGE) is being investigated by the US Securities and Exchange Commission, after it was alleged the company shipped out excess stock to US retailers in order to boost their financial results.

The business has showed signs of being under pressure int eh recent months, with performance down in North America and sales relatively flat.

Diageo told the Wall Street Journal it had received an enquiry and was co-operating with the investigation. A spokeswoman said: “”Diageo is working to respond fully to the SEC’s requests for information in this matter.”

Diageo is one of the UK’s leading drinks manufacturers and the biggest alcoholic drinks company in the US, owning the Smirnoff, Johnny Walker, Guiness and Baileys brands. The company were trading down 3.33% this morning after the news broke.