Wednesday, April 07, 2010

Oklahoma jury says Tyson defrauded growers

A McCurtain County, Oklahoma, jury has awarded $7.3 million to 10 chicken growers who sued Tyson Foods Inc. alleging that the company defrauded them through "a series of deceptive and coercive business practices," Randy Ellis of The Oklahoman reports. Tyson officials termed the decision a "runaway verdict" in a news release a said the company believes it has "strong and numerous grounds" on which to appeal.

The trial was the first of several scheduled in McCurtain County from a May 2008 suit by 50 chicken growers. The case was split into several smaller trials to "keep court proceedings from becoming unwieldy," Ellis reports. Attorney Tony Benson, who helped represent the chicken growers, voiced hope that the verdict would send a message to the poultry giant: "I heard several comments that it was a long time coming, and maybe this will make Tyson change the way it has been treating its growers." The growers claimed Tyson coerced them into operating at less than break-even costs, by using verbal and financial pressure to persuade them to borrow hundreds of thousands of dollars to construct newer-styled chicken houses, Ellis reports.

"Throughout the trial, the jury was presented with a tabloid-style rumor mill of mostly fabricated evidence that had absolutely nothing to do with the plaintiffs’ claims in the lawsuit," Tyson said in its release. The company also used the release to remind the community of its economic investment in the are in light of the still pending trials: "We are very concerned about the legal climate in McCurtain County, and we are assessing all options available to us to address this injustice and to prevent it from happening again." (Read more)

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