August 1, 2021

US food and animal safety solutions company discloses sanctions investigation

In a regulatory filing on July 30, 2021, Neogen Corporation, a Michigan-based company that develops and manufactures food and animal testing products, disclosed that in March 2020 the company received an administrative subpoena from the Office of Foreign Assets Control of the US Department of the Treasury.  According to the filing, OFAC sought information related to transactions involving parties in Iran.  Following receipt of the subpoena, Neogen conducted an internal investigation, and communicated to OFAC information concerning genomic testing services provided to a US person engaged in veterinary activities involving an Iranian party.  The company reports that it is continuing to cooperate with OFAC’s investigation, has implemented enhanced compliance measures to prevent inadvertent transactions with restricted parties, and has reserved $600,000 to provide for potential fines or penalties.  

Form 10-K