The Audit Committee at Calavo Growers, Inc. (CVGW), a marketer and distributor of avocados, launched a special investigation that suggests the company may have bribed Mexican officials to generate business.

The investigation resulted in Calavo not being able to file its annual report on time. Subsequent filings include similar language which delicately acknowledges the company may have run afoul of federal bribery and anti-kickback laws:

“The Special Committee determined that certain of those matters related to the Company’s operations in Mexico raised potential issues under the Foreign Corrupt Practices Act (“FCPA”).”

The matter has now attracted regulatory and legal scrutiny.

Calavo voluntarily disclosed this ongoing internal investigation to the SEC and the Department of Justice (DOJ), and intends to fully cooperate with the SEC and the DOJ in connection with these matters.

The company did not quantify the financial impact of the matter nor did the company deny or say it would vigorously defend itself against any future related accusations.