This prior post highlighted a disclosure by Calavo Growers, Inc. “a global leader in quality produce, including avocados, tomatoes and papayas, and a pioneer of healthy fresh-cut fruit, vegetables and prepared foods.”
Although the disclosure did not mention the Foreign Corrupt Practices Act, the post surmised that the disclosure was likely FCPA related given that a recent FCPA enforcement action concerned a guacamole manufacturing plant in Mexico. The post mentioned that, in certain instances, when one company resolves an FCPA enforcement action based on a certain issue in a specific country, it then leads to scrutiny of other companies in the same industry operating in the same country.
Sure enough as the company thereafter disclosed:
“On January 16, 2024, the Company announced that its internal audit process had identified to the Audit Committee of the Board of Directors certain matters that the Board of Directors determined after fiscal year end merited enhanced evaluation. A Special Committee of the Board of Directors (the “Special Committee”) was established to commence an investigation, with the assistance of external legal counsel and external forensic accountants. The Special Committee determined that certain of those matters related to the Company’s operations in Mexico raised potential issues under the Foreign Corrupt Practices Act (“FCPA”). The Company voluntarily disclosed this ongoing investigation to the SEC and the DOJ, and the Company intends to fully cooperate with the SEC and the DOJ in connection with these matters.”
Calavo Growers recently disclosed that its “internal investigation into potential Foreign Corrupt Practices Act violations in Mexico is winding down.”
