NEW YORK, Nov. 23, 2016 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors in Tyson Foods, Inc. ("Tyson" or the "Company") (NYSE: TSN) of the December 16, 2016 deadline to seek the role of lead plaintiff in a federal securities class action lawsuit filed against the Company and certain officers.
The lawsuit has been filed in the U.S. District Court for the Central District of California on behalf of all those who purchased Tyson securities between November 23, 2015 and October 7, 2016 (the "Class Period"). The case, William Huser v. Tyson Foods, Inc. et al, No. 2:16-cv-07709 was filed on October 17, 2016, and has been assigned to Judge Terry J. Hatter Jr.
The lawsuit focuses on whether the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failed to disclose that: (1) since 2008, Tyson colluded with leading poultry producers to manipulate the supply of broiler-chickens to keep the price of broiler-chickens artificially high; (2) between 2013 and 2016, Tyson exported hatching eggs to foreign countries to artificially reduce the supply of broiler-chickens in the U.S. and to increase the price of broiler-chickens in the U.S.; (3) as a result, Tyson lacked effective internal control over financial reporting and its public statements were materially false and misleading.
Specifically, on September 2, 2016, Law360 published an article stating that Maplevale Farms, a leading poultry producer, had brought a federal class action antitrust lawsuit against Tyson and the country's top poultry producers, alleging that, since 2008, they conspired to manipulate the supply of broiler chickens to keep the price of broiler-chickens artificially high.
On this news, over the course of two trading days, Tyson's share price fell from $76.44 per share on September 2, 2016 to a closing price of $75.28 on September 7, 2016 —a $1.16 or a 1.52% drop.
In addition, on October 7, 2016, Pivotal Research issued a report (the "Report") downgrading Tyson to "sell" from "buy," and slashing its price target from $100 to $40. The Report stated that the aforementioned lawsuit is a "powerfully convincing class-action" and if the allegations are true, "[i]t explains why Tyson can offer EPS guidance with remarkable precision; boasting of margins at record levels well into the future. The Tyson of old did not provide guidance. We believe the consistent setting and meeting of earnings targets has been a major factor in the positive re-rating of the shares."
On this news, Tyson's share price fell from $74.38 per share on October 6, 2016 to a closing price of $67.75 on October 7, 2016 —a $6.63 or a 8.91% drop.
If you invested in Tyson stock or options between November 23, 2015 and October 7, 2016 and would like to discuss your legal rights, visit www.faruqilaw.com/TSN. You can also contact us by calling Richard Gonnello toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to [email protected]. Faruqi & Faruqi, LLP also encourages anyone with information regarding Tyson's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class that is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision of whether or not to serve as a lead plaintiff.
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FARUQI & FARUQI, LLP 685 Third Avenue, 26th Floor New York, NY 10017 Attn: Richard Gonnello, Esq. [email protected] Telephone: (877) 247-4292 or (212) 983-9330