RM Law announces that a class action lawsuit has been filed in United States District Court for the Southern District of New York behalf of all persons or entities that purchased the common stock of Sanderson Farms, Inc. (“Sanderson Farms” or the “Company”) (NASDAQ: SAFM) between December 17, 2013 and October 6, 2016, inclusive (the “Class Period”).
Sanderson Farms shareholders may, no later than December 27, 2016, move the Court for appointment as a lead plaintiff of the Class. If you purchased shares of Sanderson Farms and would like to learn more about these claims or if you wish to discuss these matters and have any questions concerning this announcement or your rights, contact Richard A. Maniskas, Esquire toll-free at (877) 316-3218 or to sign up online, visit: www.rmclasslaw.com/cases/safm.
Sanderson Farms, an integrated poultry processing company, produces, processes, markets, and distributes fresh, frozen, and prepared chicken products in the United States.
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, the market had its first taste of Defendants’ fraud, when Maplevale Farms, Inc. filed an antitrust class action complaint in 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 and the other companies named in the complaint 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 U.S. District Court for the Northern District of Illinois (the “Monahan Complaint”) against Sanderson Farms and several of its industry 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 are a member of the class, you may, no later than December 27, 2016, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as “lead plaintiff.” Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain RM Law or other counsel of your choice, to serve as your counsel in this action.