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Tyson Foods Under Major Investigation

The nation’s biggest chicken company, Tyson Foods, has revealed this week that federal regulators are investigating allegations of price-fixing. That’s right! There’s some fowl play occurring in the chicken department! …Okay, we’ll show ourselves out.

…Okay, we’ll show ourselves out.

The company, which is behind brands like Jimmy Dean, Ball Park, Hillshire Farms, and its namesake brand of chicken products, disclosed in a filing [PDF] last Monday that it had received a subpoena from the SEC.This subpoena, received on Jan. 20, is likely related to allegations made in a Sept. 2016 lawsuit brought against Tyson and other poultry processors. The plaintiffs in that complaint contend that starting in 2008, the defendants “conspired and combined to fix, raise, maintain, and stabilize the price” of chicken in violation of federal and state laws.

This subpoena is related to allegations made in a Sept. 2016 lawsuit brought against Tyson and other poultry processors. The plaintiffs, in this case, allege that starting in 2008, the defendants “conspired and combined to fix, raise, maintain, and stabilize the price” of chicken in violation of federal and state laws.

According to the complaint, the companies “manipulated and artificially inflated the widely used Broiler price index,” and then later concealed their actions.

The Consumerist reports that as a result of the allegations, another lawsuit was filed against Tyson in Oct. 2016, accusing the company of including materially false and misleading statement in filings, and failing to disclose that the company had colluded with other producers to manipulate the supply of broiler chickens in order to keep supply artificially low.

Both of the lawsuits seek punitive damages and injunctive relief.

While the company says it has limited information on the SEC’s investigation — believed to be in the early stages — it is cooperating with the agency.

Furthermore, Reuters reports that Tyson’s CEO, Tom Hayes, declined to provide additional information on the subpoena during a conference call Monday,

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