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Cadence Design Systems Hides Federal Subpoena for Five Months
The company may have sold technology to banned Chinese entities in violation of federal regulations.
July 27, 2021
Without an export license, technology firms like Cadence Design Systems (CDNS), an integrated circuit system designer, are restricted from selling to certain Chinese companies included on the U.S. Bureau of Industry and Security’s (BIS) entity list. In its latest 10-Q, Cadence Design Systems revealed it may have violated the export ban and has received a subpoena in connection with a federal investigation:
“...we received an administrative subpoena from BIS requesting the production of records in connection with certain sales to China. We are cooperating with BIS and are in the process of responding to the subpoena as well as conducting an internal review. Such inquiries are subject to uncertainties and the outcomes of this and other proceedings that may occur are difficult to predict.”
The filing indicates Cadence received the subpoena in February 2021. The company filed its 10-K on February 22 but did not disclose the subpoena. Likewise, Cadence also failed to disclose the matter in its amended 10-K, Proxy Statement, and the six 8-Ks filed since receiving the subpoena.
Entity list violations can result in administrative and criminal penalties. DuDil has contacted Cadence to learn the exact date the subpoena was received and why it wasn’t disclosed sooner. We’ll update subscribers when we develop new information.
Related: MFGP, SNPS
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