DENVER (Legal Newsline) - One of the nation’s largest chicken producers is facing a lawsuit from one of its shareholders following legal troubles with the Department of Justice.
United Food and Commercial Workers International Union Local 464A filed its lawsuit on July 6 in Colorado federal court through lawyers at Wheeler Trigg in Denver and Kessler Topaz in Pennsylvania.
The suit follows criminal charges against two Pilgrim’s Pride executives for allegedly fixing prices. After news of the indictment became widespread, the company’s stock price dropped more than 12%, to $18.29.
The lawsuit alleges Pilgrim’s Pride failed to disclose that it knew there was an illegal antitrust conspiracy.
“Defendants are liable for any false and/or misleading forward-looking statements pleaded because, at the time each forward-looking statement was made, the speaker knew the forward-looking statement was false or misleading and the forward-looking statement was authorized and/or approved by an executive officer of Pilgrim’s Pride who knew that the forward-looking statement was false,” the lawsuit said.