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Tyson Foods, Inc. Class Action Lawsuit

Company Name
Tyson Foods, Inc.
Stock Symbol
TSN
Class Period
March 13, 2020 to December 15, 2020
Court
Eastern District of New York

Case Summary

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.

Robbins Geller Rudman & Dowd LLP is one of the world’s leading law firms representing investors in securities class action litigation.  With 200 lawyers in 9 offices, Robbins Geller has obtained many of the largest securities class action recoveries in history.  For eight consecutive years, ISS Securities Class Action Services has ranked the Firm in its annual SCAS Top 50 Report as one of the top law firms in the world in both amount recovered for shareholders and total number of class action settlements.  Robbins Geller attorneys have helped shape the securities laws and have recovered tens of billions of dollars on behalf of aggrieved victims.  Beyond securing financial recoveries for defrauded investors, Robbins Geller also specializes in implementing corporate governance reforms, helping to improve the financial markets for investors worldwide.  Robbins Geller attorneys are consistently recognized by courts, professional organizations and the media as leading lawyers in the industry.

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