Neogen says an internal investigation found the company had provided genomic-testing services to an unrelated U.S.-based entity that was engaged in veterinary activities involving an Iranian party. Here, sheep for sale at a market in Iran.
Photo: abedin taherkenareh/EPA/Shutterstock
Food-safety and veterinary-products company Neogen Corp. said it received an administrative subpoena from the U.S. Treasury Department’s sanctions enforcer related to business dealings involving parties located in Iran.
The Lansing, Mich.-based company, which disclosed the subpoena in its annual report filed with the U.S. Securities and Exchange Commission on Friday, said it received the subpoena from Treasury’s Office of Foreign Assets Control in March 2020.
Neogen said in the filing that it is cooperating with OFAC’s investigation and that an internal investigation found the company had provided genomic-testing services to an unrelated U.S.-based entity that was engaged in veterinary activities involving an Iranian party.
The U.S. has broad sanctions on Iran, prohibiting exports of U.S. goods, technology or services to the country.
Representatives for Neogen didn’t immediately respond to a request for comment. A Treasury spokeswoman declined to comment.
Neogen said in the filing that while it was too early to predict OFAC’s actions, the company has set aside $600,000 for potential fines. The OFAC investigation is unlikely to have a meaningful impact on its operations or finances, it added.
The company said it was looking into whether certain activities involved in the investigation might be eligible for OFAC general licenses that authorize activities that would otherwise be prohibited under the Iran sanctions.
Neogen said it was also implementing additional compliance measures to prevent dealings with restricted countries or parties subject to U.S. economic sanctions and export control laws.
Write to Mengqi Sun at [email protected]
Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
