Lawsuit Says Tyson Foods Misled Shareholders About COVID-19 Protocols

NEW YORK, Feb 2 (Reuters) - U.S. meat and poultry processor Tyson Foods Inc was sued on Tuesday for allegedly defrauding shareholders with misleading disclosures about its ability to combat the spread of the coronavirus in its facilities.

The lawsuit, which seeks class-action status, was filed in Brooklyn federal court by Mingxue Guo, who lives in Canada, and seeks unspecified damages for Tyson shareholders from March 13 to Dec. 15, 2020.

It followed a Dec. 15 letter from New York City Comptroller Scott Stringer to the U.S. Securities and Exchange Commission that asked the regulator to investigate Tyson's health and safety disclosures to investors, which include the $229 billion New York City Retirement Systems.

Tyson's share price fell 2.2% on Dec. 15 and 8.5% over five trading days after Stringer accused the company of "flagrantly misrepresenting its poor pandemic response," and called on the SEC to probe Tyson's claims it had been adhering to federal safety guidelines.

Tyson spokesman Gary Mickelson defended the company's handling of the pandemic, saying it has spent more than $500 million on employee safety, including coronavirus tests on thousands of workers a week.

"Our top priority will always be the health and safety of our people," Mickelson said.

Stringer's letter to the SEC cited reports that Tyson had more than three times as many COVID-19 cases--11,087 as of Dec. 3--and twice as many deaths as any other meatpacking company.

Tyson employed about 139,000 people as of Dec. 14 and is based in Springdale, Arkansas.

Other defendants in the lawsuit include Tyson Chief Executive Dean Banks, his predecessor and current Vice Chairman Noel White, and Chief Financial Officer Stewart Glendinning.

The case is Guo v Tyson Foods Inc et al, U.S. District Court, Eastern District of New York, No. 21-00552.

(Reporting by Jonathan Stempel in New York; Editing by Sam Holmes)

 

Latest News

<p>&nbsp; &nbsp; &nbsp;</p>
Stronger Undertone In Stocker And Feeder Prices

Auction markets noted firm demand and a stronger undertone last week for grazing cattle with spring now less than a month away. Auctions were in full-swing again after the previous week's winter storms.

Drovers Weekly Cattle Markets Update

Here's this week's update on cattle prices.

Identify ‘Dud’ Bulls With A Breeding Soundness Exam. Free Webinar Offered

DVMs Bob Larson and Jennifer Koziol will discuss how to evaluate bulls so only those that can get a high percentage of exposed cows pregnant in a short period of time are turned out into the breeding pasture this spring.

heifer auction
Relationships Build Resiliency

Livestock auction markets are built on relationships, but for LMA member market owners and employees, the importance of relationships isn't limited to sale day.

Hulett: Fed Cattle Steady as Board Falls

Packers, as usual, were in a position of leverage and needed very little cattle for the next week’s harvest. This continues to be the biggest problem with driving the cash price higher.

Beef Industry Optimism Fueled By Strong Demand

Cattle numbers will continue to contract in 2021, and producers will gain leverage on packers and retailers and margin distribution will be more equitable, according to CattleFax.