Tyson Foods refusing to comply with subpoena for meat price gouging probe, NY attorney general says


NEW YORK, Aug 3 (Reuters) – Tyson Foodstuff Inc (TSN.N), 1 of the biggest U.S. meat producers, is refusing to comply with a subpoena for a civil probe into possible selling price gouging all through the COVID-19 pandemic, New York’s legal professional common reported on Wednesday.

Letitia James, the legal professional typical, questioned a state choose in Manhattan to have to have Tyson to transform over supplies like contractual phrases, costs, and financial gain margins for its sales of meat to New York retailers from December 2019 to April 2022.

James said Tyson stopped complying right after giving “constrained” facts, based mostly on the Springdale, Arkansas-dependent firm’s “novel and unfounded argument” that New York’s price tag gouging regulation did not implement to meat imported from outside the house the state.

Sign up now for No cost limitless entry to Reuters.com

That argument “can be tested only by inspecting the extremely resources that Tyson now refuses to make,” James mentioned in a courtroom submitting.

Tyson declined to comment. It has reported it has lifted meat prices to offset soaring expenses for labor and livestock feed.

According to court docket papers, Tyson has about one-fifth of the U.S. current market for new and frozen hen, beef and pork.

James’ office environment experienced no immediate further comment about her probe.

In March, James launched a rulemaking course of action to crack down on price gouging, inspecting whether big firms ended up employing the pandemic and soaring inflation as an excuse to adhere people with higher costs on basic merchandise.

She explained her office has all through the pandemic received hundreds of problems about meat cost gouging, reinforced by media experiences that regular costs rose 20.9% for beef, 16.8% for pork and 9.2% for chicken from November 2020 to November 2021.

James reported New York regulation bans “unconscionably excessive” costs and provides her electricity to impose civil fines on sellers that charge them on critical goods for the duration of marketplace disruptions.

In January, President Joe Biden introduced a prepare to support impartial meat processors and ranchers to deal with a lack of “significant opposition” in their sectors. browse a lot more

(This story corrects headline)

Sign-up now for No cost limitless entry to Reuters.com

Reporting by Jonathan Stempel in New York Supplemental reporting by Tom Polansek in Chicago Enhancing by Lisa Shumaker

Our Standards: The Thomson Reuters Belief Ideas.


Source backlink