February 02, 2021 - An investor in shares of Tyson Foods, Inc. (NYSE: TSN) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Tyson Foods, Inc. in connection with certain allegedly false and misleading statements made between March 13, 2020 and December 15, 2020.
Springdale, AR based Tyson Foods, Inc., together with its subsidiaries, operates as a food company worldwide. It operates through four segments: Beef, Pork, Chicken, and Prepared Foods. Tyson Foods, Inc. reported that its Total Revenue rose from over $40.05 billion for the 12 months period that ended on September 30, 2018, to over $42.4 billion for the 12 months period that ended on September 30, 2019. On June 23, 2020, U.S. Senators Elizabeth Warren and Cory Booker announced the opening of an investigation into meat packing companies, including Tyson, related to their handling of pork exports and worker safety issues during the COVID-19 pandemic.
The announcement followed reports that meatpacking companies were exporting a record amount of pork to China while warning of impending meat shortages and rising prices in the United States.
Shares of Tyson Foods, Inc. (NYSE: TSN) declined from $68.71 per share on June 8, 2020 to as low as $55.61 per share on July 10, 2020.
According to the complaint the plaintiff alleges on behalf of purchasers of Tyson Foods, Inc. (NYSE: TSN) common shares between March 13, 2020 and December 15, 2020, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between March 13, 2020 and December 15, 2020, the defendants made false and/or misleading statements and/or failed to disclose that Tyson knew, or should have known, that the highly contagious coronavirus was spreading throughout the globe, that Tyson did not in fact have sufficient safety protocols to protect its employees in its facilities, that as a result, Tyson employees contracted and spread the coronavirus within the facilities, that as a result of the foregoing, Tyson would face negative impact to its production, including complete shutdowns of certain facilities, that due to the failure to protect its employees, Tyson would suffer financial harm related to its lowered production, and that as a result, Defendants’ public statements were materially false and/or misleading at all relevant times.