(ReliableNews.org) – Price fixing in the food industry is not new. However, it’s perhaps one of the most infuriating scandals for consumers. That’s what made Tyson’s recent news so shocking and apparently investors felt the same way.
Counting Their Chickens
Tyson Foods announced they’ve been cooperating with the DOJ in a price-fixing scandal since 2019. According to reports, the company turned over info to the government after conducting an internal investigation.
The company also wants the feds to grant them leniency and not charge their executives with crimes or force them to pay fines.
Some of America’s biggest meatpackers — Cargill, Tyson Foods, National Beef Packing Company and JBS USA Food Company — are accused of working together to fix prices. According to a lawsuit filed by Illinois-based Central Grocers, the companies limited the meat supply to drive up prices.
The lawsuit alleges the meatpackers worked together like a “cartel.” The plaintiff in the suit is seeking class-action status for wholesalers who were hurt when they were forced to pay exorbitant prices. The companies control “approximately 81 [to] 85 [percent]” of the processed meat in the country, according to the lawsuit. In order to drive the prices up, they would “purchase fewer cattle” to create a shortage.
The prices allegedly went up 59% during the time of the scandal.
When news broke about the scandal and Tyson’s cooperation with the DOJ, the company’s shares fell 3% that morning. In a statement to the public, the meatpacker said it will follow the country’s antitrust laws and expressed respect for the DOJ.
Just Another Scandal For Tyson
This is just the latest scandal for a company already embroiled in questions about whether it has handled the COVID-19 scandal well. Employees of the meatpacker have been complaining about poor working conditions which are allegedly contributing to coronavirus outbreaks.
All Americans want is for employers to make sure their employees are working in safe environments, and to not have to pay an arm and a leg for food. It’s not that difficult.
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