Zoetis, a developer and manufacturer of vaccines and medicines for animals, disclosed it was informed by the Treasury Department’s Office of Foreign Assets Control (OFAC) that it won’t face enforcement for potential violations of Iran sanctions uncovered during an acquisition integration.
Zoetis said in its latest annual report Tuesday that it received a no-action letter from OFAC in July regarding the self-disclosed matter. Such letters are sent when OFAC finds there is not sufficient evidence to determine a violation of sanctions.
In February 2020, Zoetis said it voluntarily informed OFAC of its preliminary findings. As its internal investigation continued, it updated the agency in December 2020, along with alerting the Department of Justice (DOJ). The company said it still has not heard back from the DOJ.
The potential sanctions violations stemmed from the company’s acquisition of Platinum Performance in August 2019. During integration, the company said it “discovered that Platinum had initiated certain transactions involving sales of food, medicine, or devices to individuals or entities who may have been resident in or had ties to Iran,” without an OFAC general license.
Zoetis hadn’t provided an update on the matter since its last annual report filed in February 2023.
In October, the DOJ announced a mergers and acquisitions safe harbor for companies to come forward with findings of potential misconduct discovered during either pre- or post-acquisition due diligence. The policy includes incentives, including a potential declination, for timely self-disclosures.
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