SEC ponders filing suit against Tyson Foods
Aug 18, 2004 12:13 PM, from staff and wire reports
The Securities and Exchange Commission is considering a lawsuit against Tyson Foods Inc over the Springdale AR-based firm’s alleged failure to reveal perks it gave to some of its executives. SEC’s staff recommends that the commission seek a civil enforcement action and possible monetary damages against the world’s largest meat producer.
The SEC charges that Tyson Foods’ proxy statements for fiscal years 1997–2003 did not fully describe or disclose $1.7 million in perks awarded to Don Tyson, a onetime senior chairman. The agency’s staff also charged that the firm failed to keep adequate internal controls on personal use of company assets and disclosure of perquisites and personal benefits.
According to the company, Don Tyson has voluntarily repaid $1.52 million to the firm.
In a December 2003 proxy statement, Tyson Foods said it regularly engages in business with company officials and board members. This includes farm operations, an aircraft-lease agreement with Tyson family members, and a $5.35 million wastewater treatment agreement with a firm in which Don Tyson is an officer.
