Lifecore Biomedical, Inc. Reaches Favorable Resolution Regarding Previously-Disclosed Investigation Of Formerly-Held Subsidiary Yucatan Foods; Lifecore Has Agreed To Pay Disgorgement In The Amount Of $406,505
Portfolio Pulse from Benzinga Newsdesk
Lifecore Biomedical, Inc. (NASDAQ:LFCR) has reached a resolution with the DOJ, avoiding prosecution for FCPA violations by its former subsidiary Yucatan Foods. Lifecore will pay $406,505 in disgorgement and continue to cooperate with ongoing investigations.
November 20, 2023 | 9:21 pm
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Lifecore Biomedical, Inc. has settled with the DOJ, agreeing to pay disgorgement and cooperate with investigations, avoiding prosecution for its former subsidiary's FCPA violations.
While the resolution of the investigation is positive in that Lifecore is not being prosecuted, the payment of disgorgement is a financial burden. The news indicates closure of a legal issue, which is generally positive, but the financial penalty and the obligation to continue cooperating with the government could be seen as negatives by investors. Therefore, the short-term impact on the stock price is likely to be neutral.
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