NEW YORK (TheStreet) -- Alere (ALR) shares are tanking 6.12% to $50.19 on Tuesday after the diagnostic test company said it received a grand jury subpoena from the Department of Justice (DOJ),Reuters reports.
The subpoena is related to the U.S. Foreign Corrupt Practices Act. Specifically, the company's sales practices in Africa, Asia and Latin America are being scrutinized.
Alere said it was currently in the process of responding to the subpoena.
In early February, pharmaceutical company Abbott Laboratories (ABT) said it was acquiring Alere for about $5.8 billion in an effort to improve its diagnostics business.
The deal is expected to be completed by the end of this year.
Separately, TheStreet Ratings currently has a "Hold" rating on the stock with a letter grade of C+.
The company's strengths can be seen in multiple areas, such as its solid stock price performance, compelling growth in net income and good cash flow from operations. However, as a counter to these strengths, we find that the company has favored debt over equity in the management of its balance sheet.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles' author.
You can view the full analysis from the report here: ALR