StockNews.AI

Charles River Laboratories Investigation Initiated: Kahn Swick & Foti, LLC Investigates the Officers and Directors of Charles River Laboratories International, Inc. - CRL

StockNews.AI • 18 hours

CRL
High Materiality8/10

Information

NEW YORK and NEW ORLEANS, Jan. 20, 2026 /PRNewswire/ -- Former Attorney General of Louisiana, Charle...

Original source

AI Summary

Kahn Swick & Foti has initiated an investigation into Charles River Laboratories regarding a DOJ subpoena linked to illegal primate importation. This scrutiny, alongside a securities class action lawsuit, could increase regulatory pressures and negatively impact Charles River's financial performance, signaling potential volatility ahead.

Sentiment Rationale

Legal investigations typically lead to uncertainty and potential financial losses. Historical examples show that companies facing similar scrutiny often experience stock price declines.

Trading Thesis

Consider shorting CRL due to increasing regulatory scrutiny and potential revenue impacts over the next 6-12 months.

Market-Moving

  • Ongoing investigations could lead to increased legal costs for CRL.
  • Revenue growth reduction estimates of 200-400 basis points are alarming.
  • Continued legal actions might pressure CRL's stock price significantly.
  • Investors should watch for operational changes that could affect earnings.

Key Facts

  • Kahn Swick & Foti announces investigation into Charles River Laboratories.
  • The investigation follows a DOJ subpoena over illegal primate importation.
  • Charles River suspended shipments affecting earnings, lowering growth expectations.
  • Securities class action lawsuit filed against Charles River remains ongoing.
  • KSF probes possible fiduciary duty breaches by Charles River's executives.

Companies Mentioned

  • Charles River Laboratories International, Inc. (CRL): Ongoing legal issues could significantly impact CRL’s stock price.

Legal

This situation falls under 'Legal' due to the ongoing investigations and lawsuits that could materially affect the company’s market performance and valuation, making it a significant risk factor for investors.

Investigation Launched into Charles River Laboratories (CRL) by Kahn Swick & Foti, LLC

Former Louisiana Attorney General Charles C. Foti, Jr., Esq., representing Kahn Swick & Foti, LLC ("KSF"), has announced the initiation of an investigation into Charles River Laboratories International, Inc. ("Charles River" or the "Company") (NYSE: CRL). This inquiry concerns potential breaches of fiduciary duties by the Company's officers and directors towards shareholders following significant operational challenges.

Key Details Surrounding the Investigation

In February 2023, Charles River made headlines by revealing it had received a subpoena from the U.S. Department of Justice. This subpoena is part of an ongoing investigation in collaboration with the U.S. Fish and Wildlife Service. The investigation focuses on the supply chain and illegal importation of non-human primates for research purposes.

As a result of this legal challenge, Charles River voluntarily suspended shipments of primates from Cambodia, which is projected to have a considerable negative effect on the Company’s financial health. Specifically, this suspension is expected to hamper earnings growth by 200 to 400 basis points.

Legal Challenges Faced by Charles River

Subsequent to these disclosures, the Company and select executives became defendants in a securities class action lawsuit. The lawsuit alleges that they failed to disclose crucial information, thereby violating federal securities laws. This litigation, which continues to unfold, highlights the growing scrutiny faced by CRL amid regulatory challenges.

KSF's focus in its investigation is to assess whether Charles River's leadership acted in accordance with their fiduciary responsibilities or if they breached laws that protect shareholder interests.

Invitation to Share Information

If you possess information that could assist in KSF's ongoing investigation or if you are a long-term holder of CRL shares interested in discussing your legal rights, KSF encourages you to reach out. Interested parties can contact KSF toll-free at 1-833-938-0905 or via email at Lewis.Kahn@ksfcounsel.com. More information can be found on their website at KSF Counsel.

About Kahn Swick & Foti, LLC

Kahn Swick & Foti, LLC is renowned as one of the leading boutique securities litigation law firms in the United States. With a diverse portfolio of clients, including institutional and retail investors, KSF works diligently to secure recoveries from losses related to corporate fraud and malfeasance. Recently, KSF was ranked among the top 10 plaintiff law firms nationally based on total settlement value, according to ISS Securities Class Action Services.

For additional details on KSF's services and expertise, please visit www.ksfcounsel.com.

Contact Information

For media inquiries, please reach out to:

  • Lewis Kahn, Managing Partner
  • Email: Lewis.Kahn@ksfcounsel.com
  • Phone: 1-877-515-1850
  • Address: 1100 Poydras St., Suite 960, New Orleans, LA 70163

Related News