Tyson Foods Inc. was recently sued by a Canadian resident in Brooklyn federal court for misleading shareholders about the company’s ability to combat the spread of COVID-19 in its facilities. Mingxue Guo is seeking unspecified damages for Tyson shareholders from March 13 to Dec. 15, 2020.
Tyson’s share price fell 2.2 percent on Dec. 15 and 8.5 percent over five trading days after New York City Comptroller Scott Stringer accused the company of “flagrantly misrepresenting its poor pandemic response.” Stringer called for the U.S. Securities and Exchange Commission (SEC) to investigate Tyson’s health and safety disclosures to investors.
Tyson spokesman Gary Mickelson defended the company, saying Tyson has spent more than $500 million on employee safety, including COVID tests on thousands of workers a week. Stringer in his letter to the SEC reported Tyson had more than three times as many COVID-19 cases and twice as many deaths as any other meatpacking company.
