In re Pilgrim's Pride Corp. Derivative Litigation
|Court:||Court of Chancery of the State of Delaware|
|Case Number:||No. 2018-0058-JTL|
|Judge:||Vice Chancellor J. Travis Laster|
|Case Contacts:||Edward G. Timlin, Andrew Blumberg|
On May 24, 2018, through their counsel, BLB&G, Plaintiff Employees’ Retirement System of the City of St. Louis filed a Verified Stockholder Derivative Complaint, on behalf of Pilgrim’s Pride Corporation (“PPC” or the “Company”), against (i) certain members of PPC’s board of directors; and (ii) PPC’s controlling stockholders, JBS S.A. (“JBS”) and JBS USA Holdings Lux S.á r.l. (“JBS Lux”). On July 2, 2018 the Court consolidated our action with a similar case. The consolidated complaint alleged, among other things, that certain of PPC’s directors and PPC’s controlling stockholders breached their fiduciary duties by causing PPC to acquire Moy Park at an unfair price and following an unfair process.
On March 15, 2019, following briefing and oral argument, the Court issued a Memorandum Opinion denying Defendants’ motion to dismiss. Click "Case Documents" at left to see the Opinion.
Following the Court’s decision on the motion to dismiss, the parties engaged in extensive discovery. On July 1, 2019, Plaintiffs’ counsel and Defendants’ counsel participated in a full day mediation session. The session ended without any agreement being reached. Thereafter, the parties continued to engage in arm’s-length negotiations under the supervision and guidance of the mediator.
On September 5, 2019, after extensive, arm’s-length negotiations, Plaintiffs and Defendants reached an agreement on the principal terms of a settlement. On October 4, 2019 the parties filed a Stipulation and Agreement of Settlement, Compromise and Release. Click here to view the stipulation.
The court will hold a settlement fairness hearing on January 28, 2020.
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