Landec announced in a recent regulatory filing that it discovered and reported to U.S. regulators a “compliance issue” at its Yucatan Foods production facility in Guanajuato, Mexico, and now faces a government probe into whether any Foreign Corrupt Practices Act violations occurred.
“The conduct at issue began prior to Landec’s acquisition of Yucatan Foods in December 2018 and relates to potential environmental and Foreign Corrupt Practices Act compliance matters associated with regulatory permitting at the facility,” the regulatory filing states. “The company has taken appropriate remedial measures and is cooperating in the U.S. government investigation that followed the company’s disclosure.”
Landec said in the regulatory filing that, because of the ongoing legal matter, it is not able to provide more details at this time, adding: “However, the issue does not relate to the health, safety, or quality of the food the company sells.”
The company said it has incurred expenses of approximately $0.8 million this quarter related primarily to legal expenses associated with this matter.
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