(Bloomberg) -- HelloFresh SE shares fell the most since August after ABC News reported it is under investigation by the US Labor Department over allegations that one of its cooking and packaging facilities used migrant teen labor.
At least six teenagers, some of whom came from Guatemala, were found working night shifts for an Illinois HelloFresh facility, ABC reported, citing Cristobal Cavazos. Cavazos is the executive director for Immigrant Solidarity, an advocacy group that helped report the matter to federal regulators.
The Labor Department told ABC it’s investigating HelloFresh and a staffing agency that hired employees for the facility.
HelloFresh shares fell as much as 8.2% on Monday in Frankfurt, marking the biggest intraday decline since Aug. 2.
“We were deeply troubled to learn of the allegations made against a former temporary staffing agency,” a HelloFresh spokesperson told Bloomberg News. “As soon as we learned of these allegations, we immediately terminated the relationship.”
The spokesperson said the report is in regards to a Factor facility that was acquired by HelloFresh in 2020.
Shares of HelloFresh, a German meal-kit delivery company, soared during the Covid-19 pandemic. They are down 87% from their 2021 high.
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