Charles River Laboratories International, Inc. (CRL) Misled Investors Regarding its Importation of Non-Human Primates for Research
A shareholder filed a class action on behalf of all persons or entities that purchased or otherwise acquired Charles River Laboratories International, Inc. (NYSE: CRL) common stock between May 5, 2020 and February 21, 2023. Charles River is a full-service, non-clinical global drug development partner with a mission to create healthier lives.
According to the complaint, on February 22, 2023, Charles River revealed that it had received a subpoena from the U.S. Department of Justice relating to an ongoing investigation in conjunction with the U.S. Fish and Wildlife Service into the supply chain and illegal importation of non-human primates for research. The Company noted that it was voluntarily suspending shipments of primates from Cambodia, which would negatively impact its earnings for the year and would reduce revenue growth by 200 basis points to 400 basis points. On this news, Charles River’s stock price fell $24.51, or 10%, to close at $219.09 per share on February 22, 2023, on unusually heavy trading volume.
On March 1, 2023, The Washington Post published an article linking the investigation to a November 2022 indictment of a monkey-smuggling ring. The article specifically called out Charles River and other research organizations as providing primates to drug companies and academic and government scientists, which they obtain from multiple sources, including international suppliers.
The complaint alleges that defendants failed to disclose to investors that: (1) Charles River had engaged in illegal activity with respect to its importation of non-human primates for research; (2) as a result, Charles River was at a heightened risk of criminal and regulatory investigation by, inter alia, the U.S. Department of Justice; and (3) Charles River would be forced to suspend shipments of primates from Cambodia.
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