NEW YORK, Oct. 20, 2016 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a class action lawsuit has been filed against Tyson Foods, Inc. (NYSE:TSN) (hereinafter “Tyson”) in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired securities of Tyson between November 23, 2015 and October 6, 2016 (the “Class Period”).
The Complaint alleges that Defendants concealed from the investing public that: (i) since 2008, Tyson Foods has colluded with the country’s leading poultry producers to manipulate the supply of broiler-chickens in order to keep the price of broiler-chickens artificially high; (ii) from 2013-2016, Tyson Foods exported hatching eggs to Mexico and other 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.; (iii) in turn, Tyson Foods lacked effective internal control over financial reporting; and (iv) as a result, Tyson Foods’ public statements were materially false and misleading at all relevant times. As a result of Defendants’ alleged false and misleading statements, the Company’s stock traded at artificially inflated prices during the Class Period.
According to the Complaint, on October 7, 2016, Pivotal Research issued a report (the “Pivotal Research Report”) downgrading Tyson Foods to “sell” from “buy,” and slashing its price target from $100 to $40. The Pivotal Research Report noted that a recent federal antitrust lawsuit is a “powerfully convincing class-action” and that if the allegations therein 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, shares of Tyson Foods dropped over 8%, closing at $67.75 per share on October 7, 2016, on heavy trading volume.
Investors who purchased or otherwise acquired shares during the Class Period should contact the Firm prior to the December 16, 2016 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
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