Securities and Exchange Commission
is investigating its accounting and disclosure practices.
The probe is only the latest for the Woodbridge, Ontario, supplier of plastic building supplies. In April, amid a criminal probe in Canada, Royal Group said it faced a criminal investigation by the U.S. Department of Justice for alleged price-fixing, the
reported. Founder Vic De Zen gave up voting control and agreed to repay more than $9.8 million in a settlement largely stemming from an internal probe into De Zen and former CEO Douglas Dunsmuir's alleged failure to disclose their role in a numbered company that sold property to Royal Group.
In May, the company named Lawrence Blanford CEO. Just days later, private equity investor Cerberus said it would weigh making a bid for the company. Then, last month, Royal said it hired advisers to weigh strategic alternatives including a possible sale.
"We have been communicating with the SEC to keep it advised of the progress of Royal Group's internal investigations related to the issues of concern to the company, the Ontario Securities Commission, and Royal Canadian Mounted Police," said James Sardo, chair of the Special Committee of Royal Group's Board that has been overseeing the investigation process. "Royal Group will continue to cooperate fully with the SEC, as we are doing with the OSC and RCMP."
On Monday, Royal shares fell 19 cents to $10.86.