Shares of poultry processor Pilgrim’s Delight (NASDAQ: PPC) had been getting taken to the woodshed right this moment after the corporate’s CEO was indicted for price-fixing, following a years-long investigation.
In consequence, the inventory closed down 12.4%.
Picture supply: Getty Photos.
Jayson Penn, the CEO of the No. 2 poultry processor behind Tyson Meals, was charged in Colorado together with Roger Austin, a former vice chairman of the corporate, and face a penalty of as much as 10 years in jail and a $1 million effective. Authorities have additionally issued subpoenas to Tyson and Sanderson Farms, whose shares additionally fell on the information.
The worth-fixing ring for broiler chickens was alleged to must taken place from 2012 to 2017.
It is unclear what the implications can be for Pilgrim’s Delight, although the corporate will most likely have to call a brand new CEO and may very well be topic to fines in addition to elevated oversight over antitrust points. There are additionally civil lawsuits pending from grocery store chains like Walmart and Kroger and meals suppliers together with U.S. Meals and Sysco, which might result in sizable penalties.
Pilgrim’s Delight has not issued the assertion on the matter, and the indictment is prone to be an eyesore for each Pilgrim’s Delight and the business. Executives from Claxton Farms had been additionally charged.
The meat business has already been dealing with challenges associated to COVID-19’s impression on meatpackers and the lack of restaurant prospects. The worth-fixing scandal is prone to be a cloud over Pilgrim’s Delight and the business till it is resolved.
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