Tyson Foods followed the pilgrim pride agreeing to settle a price-fixing class action lawsuit in court for the past four years. Tyson Foods said an “agreement of principle” had been reached to settle the civil lawsuit, but the company did not provide details of how much it will cost.
“Tyson believes that the resolution is in the best interests of the company and its shareholders and that the settlement is not a disclaimer,” company spokesman Gary Mickelson told Talk Business & Politics on January 12th.
The settlement with Tyson is pending judicial approval, and the direct buyer plaintiffs filed a joint settlement notice on Monday as the first step in the judicial approval process, Mickelson said. The settlement comes a day after Pilgrim’s Pride announced a $ 75 million settlement in the class action lawsuit held in the U.S. District Court for the Northern District of Illinois.
Tyson Foods is in its 60-day dormant period ahead of its earnings report for the first quarter of 2021 in mid-February. At this point, Tyson may provide details of the settlement charges and the impact on earnings.
Timothy Mulreinin, a former sales director for Tyson Foods, was one of ten poultry managers charged with antitrust laws in October. Tyson received an indulgence from the Justice Department in which the company proactively reported self-reported details for the investigation.
Tyson Foods (NYSE: TSN) shares closed Tuesday down 76 cents at $ 64.01. Tyson stock has traded from $ 42.57 to $ 93.68 in the past 52 weeks. Over the past year, the stock has fallen 30% in value.