Pilgrims Pride Corp. Case 10/30/2008
FEBRUARY 2012 - According to the Notice:
Securities Involved: Pilgrim’s Pride Corporation (“Pilgrim’s Pride” or the “Company”) common stock purchased or otherwise acquired from May 5, 2008 to October 28, 2008, inclusive, including Pilgrim’s Pride common stock purchased pursuant and/or traceable to any registration statement, prospectus, prospectus supplement or any documents therein incorporated by reference filed with the U.S. Securities and Exchange Commission (“SEC”) in connection with the Company’s May 14, 2008 secondary offering (the “Secondary Offering”).
Settlement Amount: $1,500,000 in cash plus interest (the “Settlement Fund”). Your recovery from the Settlement Fund will depend on the amount and timing of your purchases/acquisitions of Pilgrim’s Pride common stock, and the timing of your sales, if any, of such common stock. Depending on the number of claims filed and when Class Members purchased, acquired and sold their Pilgrim’s Pride common stock, the estimated average recovery per damaged share of Pilgrim’s Pride common stock will be approximately $1.04. Please Note: This average is only an estimate, and is before deduction of Court-approved fees and expenses.
The Lawsuit: The Settlement resolves class action litigation over allegations as to whether certain of the Defendants misrepresented the financial position of the Company to investors by overvaluing goodwill (a category of assets on the Company’s balance sheet) in violation of Generally Accepted Accounting Principles (“GAAP”), causing financial injury to members of the Class. See Question 2 below for more information.1
NOVEMBER 2011 - Poultry giant Pilgrim's Pride Corp. agreed to pay $1.5 million to settle a securities fraud class action accusing it of misleading investors about the company's financial well-being months before it filed for bankruptcy protection.
OCTOBER 2008 - On Thursday, October 30, 2008, a law firm has filed on behalf of a shareholder of Pilgrim’s Pride Corporation (NYSE:PPC) a proposed class action lawsuit in the United States District Court for the Eastern District of Texas on behalf of purchasers of Pilgrim’s Pride Corporation (NYSE:PPC) common stock during the period between May 5, 2008 and September 24, 2008 over allegedly violating Securities Laws.
According to the complaint the plaintiff alleges that Pilgrim’s Pride Corporation (“Pilgrim’s Pride”) and certain of its officers and directors violated Securities Exchange Act of 1934 by misrepresenting between May 5, 2008 and September 24, 2008the Pilgrim’s Pride’s financial condition and concealing the impact of the Pilgrim’s Pride’s capital problems on its business and prospects. The stockholder accuses that due to defendants’ positive, but false, statements, Pilgrim’s Pride’s stock closed as high as $26.85 per share in late May 2008.Specifically the complaint alleges that on September 24, 2008, after the market closed, Pilgrim’s Pride issued a press release announcing that it had notified its lenders that it expected to report a significant loss in the fiscal fourth quarter ending September 27, 2008, due to high feed-ingredient costs, continued weak pricing and demand for breast meat, and the significant negative impact of hedged grain positions during the quarter and as a result of this Pilgrim’s Pride shares fell to $3.84 per share on September 25, 2008 from $10.26 per share on September 23, 2008. According to the complaint, defendants were aware of the material undisclosed information which contradicted their public statements between May 5, 2008 and September 24, 2008. Plaintiff seeks to recover damages on behalf of all purchasers of Pilgrim’s Pride common stock May 5, 2008 and September 24, 2008.