The Associated Press is reporting that Charles River Laboratories International Inc., based in Wilmington, has agreed to pay $1.8 million to settle charges it overbilled the federal government. When you’re $19 trillion in debt, as Uncle Sam is, these types of things can rankle you.
The full story is here — https://yhoo.it/2mDleVx
Nevertheless, it understates the case that this is a slap on the wrist — Charles River Labs reported 2016 sales of $1.68 billion, or about 950 times the amount it agreed to pay. As the story states, the company spotted the error itself and cooperated fully.
So if you’re an investor in Charles River Labs (I’m not), this doesn’t move any needles.
Shares of the company, which provides drug-discovery services worldwide, closed Monday at $89.16, down 38 cents. They’re up a touch more than 17 percent so far this year.