Poultry Giant Slapped With Securities Fraud Action

Law360, New York (October 30, 2008, 12:00 AM EDT) -- Texas-based poultry giant Pilgrim's Pride Corp. is facing a purported securities fraud class action accusing it of misleading investors about the company's financial well-being while in fact it was struggling due to record-high feed costs, which the company pegged on the federal government's “deeply flawed ethanol policy.”

When the truth came out about the company's financial situation, its stock value plunged from a class period high of $26.85 in late May to $3.84 per share on Sept. 25, according to a complaint filed Wednesday in the...
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