The U.S. Department of Justice issued a subpoena to Alere Inc. ("Alere" or the "Company") this March in connection with potential violations of the Foreign Corrupt Practices Act ("FCPA"). Alere operates primarily as a provider of point-of-service diagnostic devices and services for issues such as malaria and HIV. The launch of this investigation follows the Company's announcement that it is being acquired by Abbott Laboratories for $5.8 billion, which is expected to close by the end of the year.
The investigation is specifically related to Alere's sales practices in certain countries within Africa, Asia, and Latin America. In addition to Alere's sales practices, the Department of Justice also seeks to investigate its relationship with distributors and public officials in certain countries. This subpoena is not the first issued to Alere, which, in as recently as 2012, was subpoenaed by the Office of Inspector General of the Department of Health and Human Services, demanding documents relating to the performance of Alere's products.
Problematically, the company has announced that it will not meet its deadline for its most recent annual filing and failed to state when the filing would take place. Alere cited an investigation into its revenue recognition in certain African countries as the reason for this delay, and closely related to the January subpoena issued by the U.S. Securities and Exchange Commission in connection with the same issue.
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