The class has been certified in a class action filed against food processor Tyson Foods, Inc., and certain of its officers and directors, consisting of all persons who purchased IBP, Inc., common stock on or before March 29, 2001, and subsequently sold them between March 30, 2001, and June 15, 2001. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

On January 1, 2001, Tyson and IBP entered into a merger agreement, whereby IBP shareholders were to receive cash and Tyson shares in exchange for their IBP shares. On March 29, 2001, Tyson issued a press release, including an attached letter from defendant Les Baledge to a Special Committee of the Board of Directors of IBP, in which it announced its decision to terminate the merger agreement. The letter stated, among other things, Tyson’s belief that it had been “inappropriately induced” to enter into the agreement and had relied on “misleading information” in determining to enter into it. Litigation between IBP and Tyson ensued regarding whether Tyson was entitled either to terminate or rescind the agreement, eventually resulting in a decision issued on June 15, 2001, by the Delaware Court of Chancery ordering Tyson to specifically perform its obligations under the agreement. Tyson and IBP subsequently reached an agreement to proceed with the merger, and the merger was consummated.

The plaintiffs in the present action have alleged that the March 29, 2001, letter and press release contained material misstatements regarding Tyson’s reasons for termination, and omitted material information concerning the decision to terminate. The plaintiffs allege that the alleged misstatements in and omissions from the press release and letter caused the price of IBP common stock to drop on March 30, 2001, and to remain depressed thereafter. The action further alleges that the negative effect of the alleged misstatements and omissions on the market for IBP shares was not corrected until the June 15, 2001 ruling by the Delaware Court of Chancery.

The action is currently scheduled to be tried beginning August 11, 2004.