Calavo Growers, Inc. markets and distributes avocados, prepared avocados, and other fresh and prepared food products to retail grocery, foodservice, club stores, mass merchandisers, food distributors and wholesalers on a worldwide basis. The company's stock is traded on the Nasdaq under the ticker CVGW.
In its 10-K filed on January 31, 2024, the company disclosed that the company's internal audit process had identified certain matters that merited enhanced evaluation. A Special Committee of the Board of Directors was established to commence an investigation, with the assistance of external legal counsel and external forensic accountants. The Special Committee determined that certain of those matters related to the company’s operations in Mexico raised potential issues under the FCPA. Calavo said it voluntarily disclosed the investigation to the SEC and the DOJ, and that it intended to cooperate with the SEC and the DOJ should they initiate independent investigations.
In a press release issued on April 25, 2024, Calavo said that its internal investigation was winding down.
Though there was no change in the language describing the investigation in Calavo's 10-Q filed on June 10, 2024, the 8-K filed on the same day, which announced the company's quarterly earnings release, noted that Calavo was continuing to fully cooperate with the SEC and DOJ, which indicates that both agencies commenced independent investigations.
On February 10, 2025, President Trump signed an executive order pausing enforcement of the FCPA for 180 days to allow for the attorney general to issue new guidance around its enforcement. In its 10-Q filed on March 12, 2025, Calavo disclosed that the SEC notified the company on February 18 that activity in the investigation had been postponed in response to the executive order.
In its 10-Q filed on June 9, 2025, Calavo disclosed that it did not "anticipate any near-term action from the government’s FCPA inquiry that would likely have a material impact on our short-term financial outlook." Nevertheless, the investigation remains ongoing.
