Egg Industry News and Commentary

  —  Apr 5

 
Class Action Lawsuit Against JBS.SA

    

Predictably, the vultures are gathering following the allegations of improper inspection practices and export of beef of suboptimal quality by major producers in Brazil.

The Rosen Law Firm will represent a group of foreign investors claiming that they were hurt by acts of commission and withholding of information and failure to disclose material facts in statements by the company. 

  

The Rosen Law Firm maintains, “JBS executives bribed regulators and politicians to subvert food inspections of its plants and to overlook unsanitary practices such as processing rotten meat and running plants with traces of Salmonella.”

The allegations arise from “Operation Weak Flesh” (Operacao Carne Fraca) which led to a sharp decline in exports which are only now experiencing recovery with Egypt, Chile and China lifting temporary bans.  A similar lawsuit is expected against JBS competitor, BRF.

The immediate impact of the announcement of the action by Federal police was an immediate nine percent decline in the value of JBS shares which reduced the value of investment in the company. JBS .SA traded at US$7.70 prior to the crisis declining to US$6.60.