Tyson Foods under investigation for price fixing
In its quarterly financial filing with the SEC, the company noted that on January 20, it received a subpoena from the Securities and Exchange Commission (SEC) in connection with an investigation.
"We are cooperating with the investigation, which is at an early stage. Based upon the limited information we have, we believe the investigation is based upon the allegations in In re Broiler Chicken Antitrust Litigation," the company said.
In its filing, the company noted that in In re Broiler Chicken Antitrust Litigation, it is alleged that the company has colluded with other producers to manipulate the supply of broiler chickens in order to keep supply artificially low.
Customers and farmers have alleged antitrust violations relating to pricing, production and compensation against the chicken sector, which is dominated by major meat companies, including Tyson, Koch Foods, and Pilgrim's Pride.
U.S. poultry buyers in a lawsuit in 2016 claimed that Tyson and its rivals had colluded since 2008 to reduce output and manipulate prices. ■