Tyson Foods, Inc. (NYSE: TSN) has recently been involved in several class action lawsuits, raising concerns among consumers and investors. These lawsuits cover a range of issues, including allegations of price-fixing, product recalls due to contamination, and securities claims.
Price-Fixing Allegations
One of the significant legal challenges Tyson Foods faces is a class action lawsuit alleging that the company conspired with other major pork producers to manipulate prices. The lawsuit claims that pork producers illegally conspired to align production numbers and boost profitability between 2009 and 2021. The allegations stem from the use of the tech platform Agri Stats, which purportedly facilitated the intentional constraint of pork supply to raise prices.
It's worth noting that JBS, another major player in the meatpacking industry, previously settled a similar case in 2022 for $20 million. The settlement for this case is the largest payout in a price-fixing case that has been ongoing for seven years.
Tyson's pork brands include well-known names such as Hillshire Farms, Ball Park Franks, and Wright Brand bacon.
Product Recall and Contamination Lawsuit
In addition to price-fixing allegations, Tyson Foods and its subsidiary Hillshire Brands recently faced a class action lawsuit related to product contamination. The lawsuit accused the business of selling corn dogs and sausages contaminated with wood. The allegations stem from a complaint by plaintiff Eric Wilmm, who filed against Tyson on Oct. 7 at the IIIinois Northern District Court.
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In late September, Tyson and the US Department of Agriculture’s (USDA) Food Safety and Inspection Service (FSIS) recalled 58 million lbs of corn dog and sausage on a stick products. The items were sold under the State Fair and Jimmy Dean brands, according to a list from FSIS. These items were sold online and shipped to retail and foodservice locations nationwide. They were also sold to school districts and Department of Defense facilities nationwide.
While the products were distributed to schools, they resulted from commercial sales and were not part of the food provided by the USDA for the National School Lunch Program.
The lawsuit alleged the recall was initiated after Hillshire received multiple consumer complaints, five of which involved injuries. Other claims in the lawsuit said that an investigation revealed that wooden sticks entered the production process before battering. In his lawsuit, Wilmm claims he purchased Hillshire pancake sausages on a stick from a Jewel-Osco store in Illinois in August.
Tyson Foods Recalls Almost 4,500 Tons Of Ready-To-Eat Chicken Products
Securities Class Action
Furthermore, The Rosen Law Firm announced the filing of a class action lawsuit on behalf of purchasers of the securities of Tyson Foods, Inc. (NYSE: TSN) between March 13, 2020 and December 15, 2020, both dates inclusive (the “Class Period”).
It is important to note that no class has been certified. Until a class is certified, individuals are not represented by counsel unless they retain one. Investors have the option to select counsel of their choice or remain an absent class member and do nothing at this point.
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Rosen Law Firm
- The Rosen Law Firm has been ranked among the top 4 law firms each year since 2013 for the number of successful securities class actions on behalf of investors.
- Investors should carefully identify and select experienced counsel with a track record of success leading securities class actions.
- The Rosen Law Firm represents investors throughout the globe.
These cases highlight the importance of transparency and accountability in the food industry.
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