The U.S. Securities and Exchange Commission has notified Tyson Foods, Inc. that it may bring a civil action against the company for failing to properly disclose $1.7 million in payments to its former senior chairman Don Tyson, the company said.
The notice also recommended a possible monetary penalty, alleging that the company’s proxy statements for fiscal 1997 through 2003 did not fully comply with regulations in describing the payments. In addition, Tyson has received notice that the SEC staff recommended that a similar civil action be brought against him, the company said.
Tyson has voluntarily paid $1.5 million to the company for items identified by independent members of the board during that time frame. Don Tyson’s father, John Tyson, founded the company in 1935.
Two other company employees, neither of whom are company executives and were not identified, may have actions brought against them.
The company had announced March 29 that it had been under investigation by the SEC. It said it is “cooperating fully and will continue to do so.”
Tyson is just about to break a $75 million marketing campaign themed Powered by Tyson, with online and retail promos. (Xtra, Aug. 11).
Network
