This derivative litigation was filed in January 2018 on behalf of nominal defendant Pilgrim’s Pride Corporation. The litigation arose from the acquisition by Pilgrim’s Pride Corporation of Moy Park from Pilgrim’s Pride’s controlling stockholders, JBS S.A. and JBS USA Holdings Lux S.á r.l.
The derivative action alleged that, among other things, certain of Pilgrim’s Pride’s directors and officers violated their fiduciary duties by agreeing to overpay for Moy Park in order to help JBS raise funds to pay governmental fines totaling more than $3 billion.
The litigation settled for $42.5 million and significant corporate governance reforms. Vice Chancellor J. Travis Laster granted final approval of the settlement in January 2020.