This is a securities fraud class action lawsuit against Pilgrim's Pride Corporation and certain officers and directors .
The class action lawsuit alleges that Pilgrim's Pride and certain of its officers and directors violated federal securities laws by misrepresenting Pilgrim's Pride's financial condition. Specifically, Pilgrim's Pride failed to disclose that:
(i) Pilgrim's Pride's hedges to protect it from adverse changes in costs were not working and in fact were harming Pilgrim's Pride's results;
(ii) Pilgrim's Pride's inability to continue to use illegal workers would adversely affect its margins;
(iii) Pilgrim's Pride's financial results were continuing to deteriorate rather than improve, such that Pilgrim's Pride's capital structure was threatened;
(iv) Pilgrim's Pride was in a much worse position than its competitors due to its inability to raise prices for customers sufficient to offset cost increases, whereas its competitors were able to raise prices to offset higher costs affecting the industry; and
(v) Pilgrim's Pride had not made sufficient changes to its business model to succeed in the more difficult industry conditions.
Name (Stock Symbol)
Pilgrim's Pride Corporation (PGPDQ.PK)
Pilgrim's Pride Corporation raises chickens and processes food. It filed bankruptcy in December, 2008.
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