New York - A group of cattlemen have filed a $3 billion civil lawsuit against Tyson Foods Inc, the Wall Street Journal said in its electronic edition.
According to the newspaper, the suit alleges Tyson Foods gave former agriculture secretary Mike Espy and others $12,000 in illegal gratuities in "a pattern of racketeering activity" to win preferential treatment from regulators.
The suit, filed in U.S. District Court in Washington, seeks triple damages for 40,000 cattle ranchers and feedlot operators nationwide, the newspaper said. It also seeks class action status.
Tyson's chief spokesman, Archie Schaffer, declined to comment, the newspaper said. Tyson officials have denied seeking regulatory breaks from Espy or exercising undue influence over USDA policy decisions, the Journal said.
According to the Journal, the suit alleges these cattle ranchers and feedlot operators have lost an estimated $1 billion since January 1993 due to regulatory favouritism toward Tyson.
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