Illumina Faces New Probe Over Grail Acquisition

The investigations keep piling up for Illumina regarding its acquisition of Grail, an early cancer detection company. The gene-sequencing specialist is facing a probe from the Securities and Exchange Commission, according to a Reuters report.

The SEC asked for statements and disclosures about related to the deal. Specifically, the federal agency was asking for statements and disclosures about the “conduct and compensation” of certain members of both Illumina and Grail’s management, according to the filing.

News of the probe caused the company’s shares to drop by about 4% on Friday. 

The San Diego, CA-based company is already in the middle of investigations by both U.S. and European antitrust regulators. The SEC’s probe follows Illumina being fined $476 million by the EU in July for closing the deal before approval.

Illumina has appealed both the European Commission and FTC’s decisions to block the deal. The company noted if it lost either appeal, it would divest Grail.

The company has also gone through a series of twists in turns as a result of the deal. In March, Carl Icahn, an activist investor had been pushing to get more board seats and seek the removal of deSouza. Icahn pointed sharply criticized the move to acquire Grail before regulatory agencies gave approval to the deal.

Most recently, shareholders gave the boot to John Thompson, the company’s chair. However, Ichan failed for two other nominees to take board positions.

The battle took its toll and Francis deSouza resigned from his position as CEO and director of Illumina.