A class action lawsuit filled against Charles River Laboratories International, Inc. (referred to as “Charles River” or the “Company”) on behalf of individuals and entities who purchased or acquired Charles River securities between May 5, 2020, and February 21, 2023 (the “Class Period”). Interested investors have until July 18, 2023, to apply to the Court for appointment as the lead plaintiff in the lawsuit.
On February 22, 2023, Charles River disclosed that it had received a subpoena from the U.S. Department of Justice (DOJ) in connection with an ongoing investigation conducted jointly with the U.S. Fish and Wildlife Service (USFWS) regarding the supply chain and illegal importation of non-human primates for research purposes. The Company also announced the voluntary suspension of primate shipments from Cambodia, a decision that would have a negative impact on its earnings for the year and reduce revenue growth by 200 to 400 basis points.
As a result of this news, Charles River’s stock price experienced a significant decline of $24.51, or 10%, closing at $219.09 per share on February 22, 2023, accompanied by unusually high trading volume.
The class action complaint alleges that throughout the Class Period, the Defendants made materially false and/or misleading statements, while also failing to disclose crucial adverse facts about the Company’s business, operations, and prospects. Specifically, it is claimed that the Defendants failed to disclose: (1) Charles River’s involvement in illegal activity related to the importation of non-human primates for research; (2) the heightened risk of criminal and regulatory investigation faced by Charles River, including from the U.S. Department of Justice; (3) the forthcoming suspension of primate shipments from Cambodia; and (4) the materially misleading and/or unfounded nature of Defendants’ positive statements regarding the Company’s business, operations, and prospects.
If you purchased or otherwise acquired Charles River shares and suffered a loss, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions contact us now.
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