Tyson admits to SEC investigation over chicken prices
The company told reporters that it recently received a subpoena from the government agency, but wouldn’t give further details.
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.”
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.
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