On February 22, 2023, Charles River disclosed that it had received a grand jury subpoena for documents relating to a joint United States Department of Justice (“DOJ”) and U.S. Fish and Wildlife Service (“USFWS”) investigation into the illegal importation of nonhuman primates from Cambodia for research purposes, which has already led to criminal indictments of two Cambodian officials, as well as a Cambodian non-human primate supplier. The Company stated it would voluntarily suspend shipments of primates from Cambodia, which could impact the Company’s ability to source non-human primates for research purposes. In addition, it warned that the investigation could harm its business.
On this news, Charles Rivers’ stock price fell as much as 15% during intraday trading on February 22, 2023, harming investors.