INDUSTRY/BUSINESS NEWS: Tyson Settle Lawsuit Over Antibiotics

An important note about correctly labeling food items:
Tyson Foods Inc. has agreed to settle a lawsuit in which the Company was accused of misleading customers with labels claiming Tyson's chickens were "raised without antibiotics." In the proposed settlement, Tyson will pay anyone who bought the mislabeled poultry up to $50. The total value of the settlement is $5 million, not including attorney's fees; further, if Tyson does not give that amount back to consumers, the Company will donate the difference to food banks.
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TYSON SETTLE LAWSUIT OVER ANTIBIOTICS

BALTIMORE – Tyson Foods Inc. has agreed to settle a lawsuit that accused the poultry giant of falsely claiming its chickens were ''raised without antibiotics.'' Under the proposed settlement Tyson would pay up to $50 to anyone who bought poultry that was labelled antibiotics-free.

The payout from Tyson would be capped at $5 million, not including $3 million in attorneys' fees. If Tyson does not give that much money back to consumers, the company will make up the difference by donating products to food banks. Attorneys for the plaintiffs and for Tyson have asked U.S. District Judge Richard D. Bennett to grant preliminary approval to the settlement. At that point, Tyson would begin a US wide print and Internet advertising campaign to let people know how they can claim refunds. ''We're pleased a settlement has been reached and will now wait for the court to review and, we hope, approve the agreement,'' Tyson spokesman Gary Mickelson said in a statement. ''While we believe our company acted appropriately, we also believe it makes sense for us to resolve this legal matter and move on.'' In 2007, Tyson began advertising and labelling the company’s poultry products as having been ''raised without antibiotics.'' The following year, the U.S. Department of Agriculture ordered Tyson to remove the labels when it found that the company had injected its chickens with antibiotics before they hatched.

Sources: LawDay, Tyson Foods press release