American depository shares of BRF SA (BRFS) slumped to a new 14-month low on Friday after Reuters reported that Brazil’s federal police launched a raid and search on the poultry exporting company and on meat producer JBS SA over claims that they bribed regulators to subvert inspections of their plants.
BRFS was down nearly 8% recently with a new 52-week range of $11.77 to $18.12.
The report said that police uncovered about 40 cases of meatpacking companies who bribed inspectors in exchange for overlooking unsanitary practices at the facilities. Investigators also found evidence that some companies manipulated certificates on meat for export to Spain and Italy.
Brazil’s police said they arrested three BRF workers and two JBS employees in addition to 20 public officials, the report also said.
BRF did not comment on the probe, Reuters added.