Springdale-based Tyson Foods was recently sued in Delaware Chancery Court by shareholder Michael Castagna, who owns 283 shares of stock in the company.
Castagna seeks access to Tyson’s corporate records involving the treatment of animals and employees, noting the company has failed at times to provide enough water for the chickens in its grow-out business.
Castagna originally petitioned Tyson Foods in mid-December to inspect the company’s records, as under Delaware General Corporate Law, Section 220, stockholders have the right to inspect books and records involving the company’s business. He worked with Tyson Foods to secure the documents, but said in the new court filing that he was unable to gain access to the records requested.
In the lawsuit, Castagna asked the court to intervene and allow him to inspect the corporate records. He asked that Tyson be directed to produce copies of the request documents immediately. Castagna indicated in the filing that the records are necessary for the investor to fully evaluate management’s oversight.
The 300-page complaint with attachments indicated Tyson has failed to provide birds with adequate water and feed and has allowed abuse to occur by workers and contractors, resulting in animal cruelty.
The water lines inside the poultry houses are raised periodically as the birds grow. The complaint notes that the movement is gauged by the average bird size, and is too high for smaller birds to reach, which creates dehydration among the slower-growing birds.
Other allegations against Tyson Foods included inadequate personal protective equipment for employees and a high rate of workplace injuries. Castagna notes that the well-being of chickens and workers is critical to Tyson’s long-term financial success.
Legal Impact for Chickens, a legal firm representing the plaintiff, released the following statement regarding the litigation.
“The last few months have shown that Americans demand sunlight over secrecy,” said Alene Anello, president of Legal Impact for Chickens. “Shareholders want Tyson to prosper, and the surest path is full transparency about how its people and animals are treated.”
Tyson Foods did not respond to a request for comment for this story.
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