According to a October 30, 2008, press release, the Complaint charges that the defendant and certain of its officers and directors violated federal securities laws by misrepresenting the Company's financial condition. Specifically, defendants failed to disclose that: (i) the Company's hedges to protect it from adverse changes in costs were not working and in fact were harming the Company's results; (ii) the Company's inability to continue to use illegal workers would adversely affect its margins; (iii) the Company's financial results were continuing to deteriorate rather than improve, such that the Company's capital structure was threatened; (iv) the Company 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) the Company had not made sufficient changes to its business model to succeed in the more difficult industry conditions.
On December 1, 2008 the defendant filed a Notice of Bankruptcy after filing for Chapter 11.
On May 14, 2009, an order consolidating related actions. Every pleading in the Consolidated Action shall have the following caption: IN RE PILGRIM'S PRIDE CORPORATION SECURITIES LITIGATION 2:08-cv-00419.
On May 21, 2009, the court appointed the Pennsylvania Public Fund Group to serve as Lead Plaintiff. The law firm of Banoway Topaz Kessler Meltzer & Check, LLP was hereby approved was Lead Counsel for the Class. Lastly, the Albritton Law Firm is hereby approved as Liaison Counsel for the Class.
On June 26, 2009, a consolidated class action was filed in this action by the plaintiffs.
On August 17, 2009, the Court Ordered that count I of the Consolidated Class Action Complaint alleging securities fraud under Section 10(b) of the 1934 Exchange Act and Rule 10b-5 against the Officer Defendants Dismissed Without Prejudice. Count II of the Consolidated Class action Complaint alleging controlling person liability pursuant to Section 20(a) of the 1934 Exchange Act against the Officer Defendants was also Dismissed Without Prejucice. Plaintiffs were granted leave to file an amended complaint within 30 days from the date of this order.
On October 4, 2011, the Court issued an Order reassigning the case to Hon. David Folsom.
On January 23, 2012, a Preliminary Settlement was approved by the Court with a fairness hearing to be held on May 1, 2012.
On May 2, 2012, the Court issued an Order and Final Judgment.