Tyson Foods Resolves Claims Involving Mexican Subsidiary

Tyson Foods TSN announced today that it has resolved a matter with the U.S. government involving Tyson's voluntary disclosure of improper payments related to an export program at the company's Mexican poultry subsidiary. In early 2007, Tyson voluntarily reported that improper payments of more than $100,000 had been made by Tyson de México to two Mexican government veterinarians, both directly and through their spouses. The veterinarians were responsible for certifying chicken products for export as part of a voluntary government inspection program. The investigations led to claims of violations of the Foreign Corrupt Practices Act (FCPA). The claims have now been resolved, with Tyson signing a deferred prosecution agreement, which includes paying a penalty of $4 million to the DOJ, and a consent agreement with the SEC involving a 'disgorgement' payment, including interest, of $1.2 million. In addition, the company has enhanced its compliance program designed to prevent and detect violations of the FCPA and has agreed to self-report its compliance efforts to the DOJ and SEC for a two-year period.