NEW YORK--(BUSINESS WIRE)--
Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of all persons or entities who acquired Sanderson Farms, Inc. (NASDAQ : SAFM) securities between December 17, 2013 and October 6, 2016 (the “Class Period”).
The Complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) Sanderson Farms systematically colluded with several of its industry peers to fix prices in the broiler-chicken market; (ii) the foregoing conduct constituted a violation of federal antitrust laws; (iii) consequently, Sanderson Farms’ revenues during the Class Period were the result of illegal conduct; and (iv) as a result of the foregoing, Sanderson Farms’ public statements were materially false and misleading at all relevant times.
On September 2, 2016, Maplevale Farms, Inc. filed an antitrust class action complaint in the U.S. District Court for the Northern District of Illinois (the “Maplevale Complaint”) against Sanderson Farms and several other poultry producers, including Tyson Foods, Inc. (“Tyson”), Pilgrim’s Pride Corporation, and Perdue Farms, Inc., alleging that Sanderson Farms had conspired since 2008 to manipulate the prices of broiler chickens in violation of the Sherman Antitrust Act, 15 U.S.C. §§ 1-7 (the “Sherman Act”).
Other antitrust lawsuits quickly followed. On October 4, 2016, a group of individual consumers filed an antitrust class action complaint in the U.S. District Court for the Northern District of Illinois (the “Monahan Complaint”) against Sanderson Farms and several of its peers, including Tyson, alleging violations of the Sherman Act.
Following the filing of the Monahan Complaint, Sanderson Farms’ share price fell $3.98, or 4.14%, to close at $92.21 on October 4, 2016.
On October 7, 2016, Pivotal Research downgraded Tyson from “Hold” to “Sell.” Explaining the downgrade, analyst Timothy Ramey directed investors’ attention to the “powerfully convincing” allegations of price manipulation by Sanderson Farms, Tyson, and their industry peers.
On news of the downgrade by Pivotal Research, Sanderson Farms’ share price fell $4.03, or 4.32%, to close at $89.15 on October 7, 2016.
If you acquired Sanderson securities during the Class Period or continue to hold shares purchased prior to the Class Period, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact J. Brandon Walker, Esq. by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information, please go to www.bespc.com.
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