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 laws.
The lawsuit also claims that the companies tried to cover their tracks when they “manipulated and artificially inflated the widely used Broiler price index.”
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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.
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.
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