Multinational produce and agriculture company Calavo Growers disclosed in an annual filing an investigation into its Mexico operations found potential issues under the Foreign Corrupt Practices Act (FCPA).
On Jan. 16, the company announced its internal audit process identified to the board of directors’ audit committee certain matters that “merited enhanced evaluation,” according to Calavo’s Form 10-K filed with the Securities and Exchange Commission (SEC) on Wednesday.
In response, the board appointed a special committee to commence an investigation, with assistance from outside legal counsel and external accountants, per the filing.
After the investigation determined potential violations of the FCPA, the company said it voluntarily disclosed the results of its ongoing probe to the SEC and Department of Justice (DOJ). The company said it plans to fully cooperate with the SEC and DOJ.
Calavo said it could not predict the timing, outcome, or potential impact on its financial statements or any actions that might be taken by the SEC, DOJ, or Mexican authorities.