020704 Ranchers Sue Meatpackers for Insider TradingJuly 3, 2002Sioux Falls, SD - Cattle ranchers from three states have sued the nation's four largest meatpackers accusing them of insider trading. The suit alleges the packers didn't correct a Department of Agriculture mistake on the reported price of boxed beef during the spring of 2001. The mistake allowed the meatpackers -- Excel Corp., ConAgra Beef Co., Farmland National Beef Packing Co. and IBP -- to reduce the prices they paid ranchers for cattle over a 29-day period, according to the lawsuit. James O'Connor, a lawyer for the plaintiffs, estimates meatpackers made an extra $40 million because of the incorrect numbers. The lawsuit was filed Friday in federal court on behalf of all cattle owners who sold livestock to the companies in April and May 2001. "We can tell you we are disturbed by the claims apparently made in the suit," said Gary Mickelson, a spokesman for IBP, which was recently acquired by Tyson Foods. "We depend upon independent cattle producers to supply our plants and have no reason to hurt them." Mark Klein, a spokesman for Excel, said the lawsuit was without merit and the company would defend itself.
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