The Securities Exchange Commission is investigating whether Tyson Foods
manipulated chicken prices.
Tyson disclosed the SEC investigation in a quarterly financial filing,
saying it suspects that the inquiry involves price-fixing allegations
connected to the company’s broiler chickens. Tyson denied that it colluded
with others in the industry to drive up chicken prices.
A recent lawsuit claims otherwise, alleging that, starting in 2008, Tyson
and its competitors “conspired and combined to fix, raise, maintain, and
stabilize the price” of chicken. This would violate both federal and state
The lawsuit also claims that the companies tried to cover their tracks when
they “manipulated and artificially inflated the widely used Broiler price
Keep your cool in a crisis with these tips.]
It’s not the only legal trouble with which Tyson is currently contending.
Last month, a group of chicken farmers accused Tyson of trying to lower
their pay. The company also denied those allegations.
Though Tyson received a subpoena from the SEC, Pilgrim’s Pride Corp. (a
competitor that was also named in the September lawsuit) said it had not.
Though Tyson said its cooperating with the SEC, its chief executive
remained tight lipped about the investigation.
The Chicago Tribune reported:
Tyson said in the filing it's cooperating with the investigation, which is
at an early stage. Chief Executive Officer Tom Hayes, speaking on a
conference call with reporters, declined to comment further except to say
the company wants to defend itself in court.