Reported by Arkansas Online, at least eight more complaints seeking class-action status have been filed recently against Tyson and the other poultry producers, including Pilgrim’s Pride Corp., Perdue Farms Inc. and Sanderson Farms Inc. In response to the price-fixing lawsuits, an analyst at Pivotal Research downgraded Tyson shares from “hold” to “sell” early this month. The analyst, Timothy Ramey, also dropped his target price for Tyson stock from $100 per share to $40 per share.
Several law firms representing shareholders have filed lawsuits in the last two days claiming Tyson Foods made false or misleading statements related to allegations the company colluded with other agribusinesses to fix chicken prices. Early last month, food distributor Maplevale Farms Inc. filed an antitrust complaint in Illinois against Tyson and several other poultry producers. The lawsuit said the companies had conspired since 2008 to manipulate the price of broiler chickens.