Why Illumina Shares Are Falling Today

Illumina Inc ILMN disclosed in an SEC filing that the Securities and Exchange Commission is the latest government agency investigating the company's $8 billion Grail acquisition.

In quarterly 10Q filing, Illumina said that it received a letter in July 2023 informing it of the investigation and a request for "documents and communications primarily related to Illumina's acquisition of Grail and certain statements and disclosures concerning Grail, its products, and its acquisition, and related to the conduct and compensation of certain members of Illumina and Grail management, among other things."

Illumina said it is cooperating with the SEC.

The gene-sequencing machine maker had repurchased Grail in 2021, despite opposition from U.S. and European antitrust regulators, a decision that prompted investor Carl Icahn to pursue a proxy fight at Illumina, arguing Grail should be divested as it had cost investors billions of dollars.

In July, the European Commission fined Illumina and Grail approximately €432 million and €1,000, respectively, for implementing their proposed merger before approval by the commission, in breach of EU merger control rules.

"This is a very serious infringement, which requires the imposition of a proportionate fine, with the aim of deterring such conduct," the European Commission said.

Price Action: ILMN shares are down 3.81% at $178.06 on the last check Friday.