May 9, 2021

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Lawsuit claims Tyson Food items misled shareholders about COVID-19 protocols

By Jonathan Stempel



a sign on the side of a building: FILE PHOTO: Fog shrouds the Tyson slaughterhouse in Burbank, Washington


© Reuters/Ross Courtney
FILE Photograph: Fog shrouds the Tyson slaughterhouse in Burbank, Washington

NEW YORK (Reuters) – U.S. meat and poultry processor Tyson Food items Inc was sued on Tuesday for allegedly defrauding shareholders with deceptive disclosures about its means to fight the spread of the coronavirus in its facilities.

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The lawsuit, which seeks class-action position, was filed in Brooklyn federal courtroom by Mingxue Guo, who life 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 Metropolis Comptroller Scott Stringer to the U.S. Securities and Exchange Fee that questioned the regulator to look into Tyson’s health and safety disclosures to buyers, which include the $229 billion New York City Retirement Units.

Tyson’s share rate fell 2.2% on Dec. 15 and 8.5% above five investing days following Stringer accused the enterprise of “flagrantly misrepresenting its poor pandemic reaction,” and termed on the SEC to probe Tyson’s statements it had been adhering to federal basic safety recommendations.

Tyson spokesman Gary Mickelson defended the firm’s handling of the pandemic, declaring it has spent more than $500 million on staff safety, such as coronavirus exams on hundreds of personnel a 7 days.

“Our leading priority will generally be the wellness and security of our individuals,” Mickelson reported.

Stringer’s letter to the SEC cited experiences that Tyson experienced more than 3 moments as quite a few COVID-19 conditions–11,087 as of Dec. 3–and twice as several fatalities as any other meatpacking enterprise.

Tyson utilized about 139,000 folks as of Dec. 14 and is dependent in Springdale, Arkansas.

Other defendants in the lawsuit incorporate Tyson Chief Government Dean Financial institutions, his predecessor and present-day Vice Chairman Noel White, and Main Fiscal Officer Stewart Glendinning.

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

(Reporting by Jonathan Stempel in New York Enhancing by Sam Holmes)