Published: November 04, 2008 02:08 pm      

UPDATED: Class action suits pile up against Pilgrim's Pride

Chicken producer works to avoid bankruptcy

Suwannee County's largest employer is facing several class action lawsuits as its stock price improves slightly. No word yet if the Texas-based Pilgrim's Pride Corp. will face bankruptcy, which an independent research firm last week called "highly probable."

Five class action lawsuits have been filed against Pilgrim's Pride to date. All complain that the corporation violated federal securities laws by misrepresenting themselves in the market and artificially inflating prices of stock.

Meanwhile, a company spokesperson said Pilgrim's is working hard to regain its footing.

"We continue to believe Chapter 11 is not in anyone's best interest, and we are working extremely hard to develop a long-term solution to improve our liquidity and capitalize on our strategic advantages," Ray Atkinson, director of Corporate Communications for Pilgrim's Pride, said in an email to the Democrat. "We have been working diligently with our advisors to develop a comprehensive business plan that details how we spend money, how we run our operations, and how we intend to return to profitability. Our lenders have been constructive and supportive throughout this period, and the extension of the temporary covenant waiver provides additional flexibility to explore opportunities to refinance and recapitalize our business."

Pilgrim's, the nation's largest chicken producer, was trading at $1.13 a share as of 2:32 p.m. Monday, up from $1.09 Friday but down from a 52-week high of $29.59 in December 2007.

The Suwannee County plant employs more than 1,300 workers.