In a bit of irony, lawyers for Cody Easterday filed suit against Tyson Fresh Meats Inc., claiming the company breached their contract to share profits on the sale of “Cody’s Beef” to Japanese customers.
According to court documents, in 2013, Tyson approached Easterday to use his name and likeness to sell beef to Nippon Ham Foods under the “Cody’s Beef” label. Easterday and Tyson had an agreement for a joint venture to equally share the risk and profits of supplying cattle to Tyson. Easterday agreed Tyson would file a trademark with “Cody’s Beef” in Japan, provide tours to Nippon Ham executives and personnel, and allow for the use of his name and photograph with the phrase, “I raised it!”
From 2015-20, Easterday expected to be compensated with his share of the profits from using his photograph and raising premium beef for the venture. The lawsuit states that Easterday Ranches Inc. sold 65,000 head to Tyson at less-than-premium prices for use in the “Cody’s Beef” program during that period.
According to court documents, as late as May 2020, Tyson acknowledged its written agreement with Easterday and did not make an indication to not pay Easterday for the joint venture. The lawsuit states that the cattle in “Cody’s Beef” were also covered by the cattle feeding agreements Easterday Ranches had with Tyson to supply cattle for the company and, in turn, reimbursed for the costs of raising cattle for slaughter at its Pasco, WA, plant.
Between 2016 and 2020, Easterday falsely provided invoices under the cattle feeding agreements to Tyson for nearly 263,000 head, to repay an estimated $200 million in losses Easterday incurred while trading in cattle commodities.
Easterday Ranches and Easterday Farms filed for bankruptcy in February 2021 due to the “ghost cattle” scheme. During bankruptcy proceedings, Easterday sought an accounting of the “Cody’s Beef” venture, and according to the suit, Tyson did not provide one.
Easterday’s attorney, Carl Oreskovich, filed documents on Sept. 26 regarding the restitution portion of the sentencing, claiming Easterday is owed $100 million for the joint venture.
Easterday pled guilty to one count of wire fraud, was sentenced to 11 years in prison, and was ordered to pay $244 million in restitution to Tyson and Segale Properties. Tyson is still owed $170 million of the $233 million they were to be paid.
Easterday was initially expected to report to federal prison on Dec. 2, but was granted an extension until Dec. 16. Easterday reported to the federal facility in Lompoc, CA, a medium-security prison with an adjacent farm and livestock program at the minimum-security camp. — Charles Wallace, WLJ editor
