Tyson Foods, Inc. Class Action Lawsuit
- Company Name
- Tyson Foods, Inc.
- Stock Symbol
- Class Period
- March 13, 2020 to December 15, 2020
- Eastern District of New York
The Tyson Foods, Inc. class action lawsuit charges Tyson Foods and certain of its executives with violations of the Securities Exchange Act of 1934 and seeks to represent purchasers or acquirers of Tyson Foods publicly traded securities between March 13, 2020 and December 15, 2020, inclusive (the “Class Period”). The Tyson Foods class action lawsuit was commenced on February 2, 2021 in the Eastern District of New York and is captioned Guo v. Tyson Foods, Inc., No. 21-cv-00552.
Tyson Foods is purportedly the largest U.S. producer of processed chicken, beef, pork, and protein-based products.
The Tyson Foods class action lawsuit alleges that, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Tyson Foods knew, or should have known, that the highly contagious coronavirus was spreading throughout the globe; (2) Tyson Foods did not in fact have sufficient safety protocols to protect its employees in its facilities; (3) as a result, Tyson Foods employees contracted and spread the coronavirus within the facilities; (4) as a result of the foregoing, Tyson Foods would face negative impact to its production, including complete shutdowns of certain facilities; (5) due to the failure to protect its employees, Tyson Foods would suffer financial harm related to its lowered production; and (6) as a result, defendants’ public statements were materially false and/or misleading at all relevant times.
On December 15, 2020, New York City Comptroller Scott M. Stringer called on the U.S. Securities and Exchange Commission (“SEC”) to open an investigation into Tyson Foods. In his letter to the SEC, Comptroller Stringer described Tyson Foods’s various failures to carry out its stated coronavirus protection policies, such as “the steps Tyson eventually took to protect employees were grudging and minimal, such as letting workers use bandanas or sleep masks, which function poorly as protective devices” and that “as of December 3, 2020 Tyson has the highest number of COVID-19 cases of any company in the meatpacking industry, more than three times as many cases as the next company.” On this news, the price of Tyson Foods shares fell, damaging investors.
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