CRL's 4.14% Plummet Amid Legal Storm and Operational Woes Drives $290M Surge in Volume Ranking 500th in U.S. Equities

Market Snapshot

Charles River Laboratories International (CRL) experienced a significant drop in share price on October 29, 2025, falling 4.14% to close at a level not specified. Despite the decline, the stock saw a surge in trading activity, with a dollar volume of $0.29 billion—up 40.19% from the previous day—ranking it 500th in volume among U.S. equities. The sharp increase in trading volume suggests heightened investor attention, though the price movement indicates growing concerns about the company’s legal and operational challenges.

Key Drivers Behind the Decline

A legal investigation initiated by Kahn Swick & Foti, LLC has emerged as a critical factor influencing CRL’s recent performance. The law firm, led by former Louisiana Attorney General Charles C. Foti, Jr., announced a probe into whether CRL’s officers and directors breached fiduciary duties or violated state or federal laws. This follows a 2023 disclosure that the company received a subpoena from the U.S. Department of Justice regarding an investigation into the illegal importation of non-human primates for research. At the time, CRL voluntarily suspended shipments of primates from Cambodia, a decision it warned would reduce annual revenue growth by 200–400 basis points.

The legal scrutiny has escalated since the company and executives faced a securities class action lawsuit in 2023, alleging failure to disclose material information about the DOJ probe. The ongoing litigation has likely eroded investor confidence, particularly as KSF’s latest investigation raises questions about corporate governance. The firm’s focus on potential fiduciary breaches underscores broader concerns about management’s transparency and accountability, which could deter long-term institutional investment.

The impact of these legal issues is compounded by CRL’s operational challenges. The suspension of primate shipments from Cambodia, a key supplier, disrupted its supply chain and directly affected earnings. While the company has not disclosed updated guidance for revenue growth, the 2023 warning suggests a persistent drag on profitability. This operational vulnerability, paired with regulatory uncertainty, has likely amplified market skepticism.

Investor sentiment appears further weakened by the broader context of legal risks in the life sciences sector. CRL’s reliance on non-human primates for research places it in a regulatory gray area, particularly as authorities crack down on illegal wildlife trade. The DOJ’s involvement signals heightened enforcement priorities, which may lead to stricter compliance requirements or penalties for companies like CRL. Such risks could deter growth-oriented investors seeking stable returns.

The recent 4.14% price drop aligns with these dynamics. While the surge in trading volume indicates active short-term speculation, the downward trend reflects a lack of conviction in the stock’s near-term prospects. Institutional investors, wary of prolonged legal battles and operational disruptions, may be exiting positions or avoiding new commitments. Meanwhile, retail investors might be participating in the volatility, though the long-term outlook remains clouded by unresolved litigation and regulatory headwinds.

In summary, CRL’s performance is being driven by a confluence of legal, operational, and regulatory factors. The ongoing investigations into its leadership and supply chain practices have created a toxic mix of uncertainty and risk. Until these issues are resolved—or at least mitigated—CRL’s ability to attract capital and stabilize its stock price will remain constrained. Investors will need to weigh the company’s capacity to navigate these challenges against its core business strengths in the life sciences sector.