US DOJ Probes Poultry Companies Over Employment Practices: Report

Author: Shivani Kumaresan | March 04, 2022 11:24am

• The Justice Department in the U.S. has launched an investigation into whether poultry companies have engaged in anticompetitive sharing about employment practices, the Wall Street Journal reported.
• The move adds to the scrutiny that U.S. meat processors face from the government and their workers for holding down wages.
• The report noted that the department had put at least some companies on legal notice to preserve documents.
• Pilgrim’s Pride Corp (NASDAQ:PPC) recently disclosed in a regulatory filing that it learned on February 9, 2022, that the DOJ had opened a civil investigation into human resources antitrust matters. The company plans to cooperate when a CID is served.
• Other major companies in the industry include Tyson Foods Inc (NYSE:TSN) and Sanderson Farms Inc (NASDAQ:SAFM).
• The Biden administration has alleged that the U.S. meat industry uses its scale to inflate Americans’ food bills. 
• Price Action: PPC shares are trading lower by 4.66% at $23.13, TSN down by 1.49% at $93.92, and SAFM lower by 0.92% at $177.50 on the last check Friday.

Posted In: PPC SAFM TSN