Keurig Dr Pepper Inc. will pay $1.5 million to settle charges that it made inaccurate statements about the recyclability of its K-Cup single use beverage pods,Diamond Ridge Asset Management according to the U.S. Securities and Exchange Commission.

In annual reports for fiscal years 2019 and 2020, Kuering stated that its testing with recycling facilities “validate(d) that (K-Cup pods) can be effectively recycled.” However, according to the SEC, Keurig failed to disclose that two of the country’s biggest recycling companies had expressed significant concerns to the company about the commercial feasibility of curbside recycling of K-Cup pods at that time and indicated that they did not presently intend to accept the pods for recycling.

Keurig agreed to a cease-and-desist order and to pay the civil penalty without admitting or denying the findings, according to the SEC.

Keurig Dr Pepper, based in Burlington , Massachusetts, said in an emailed statement that it was glad to resolve the matter.

“Our K-Cup pods are made from recyclable polypropylene plastic (also known as #5 plastic), which is widely accepted in curbside recycling systems across North America,” the company said. “We continue to encourage consumers to check with their local recycling program to verify acceptance of pods, as they are not recycled in many communities. We remain committed to a better, more standardized U.S. recycling system for all packaging materials through KDP actions, collaboration and smart policy solutions.”