2023-03-24 07:05:11 ET
A decision by Tyson Foods ( NYSE: TSN ) to close a processing plant in Virginia is leading to some questions if the food giant broke antitrust regulations by not giving proper notice to chicken suppliers.
Legal experts indicate Tyson Foods ( TSN ) could face fines under the Packers and Stockyards Act on advance warning for such actions to suppliers.
The response from Tyson Foods ( TSN ) is that the company has committed to paying the chicken growers for the full term of the remaining contracts to keep it in compliance with federal regulations.
Earlier in the week, some Tyson farmers and local government officials held a meeting to voice concerns about Tyson's ( TSN ) short timeline for closure of the plant.
Shares of Tyson Foods ( TSN ) fell 0.14% in premarket trading on Friday to $56.00 vs. the 52-week trading range of $55.81 (from Thursday) to $99.54.
Read more details about Tyson Foods' ( TSN ) plans to shutter two poultry plants in Arkansas and Virginia.
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Tyson Foods faces scrutiny over short notice of plant closings