SPRINGDALE, Ark. — Tyson Foods says it is owed at least $225 million from Easterday Ranches after the feedlot operator allegedly falsified records and said it fed more than 200,000 non-existent cattle from 2017 through 2020.
Tyson Foods said it discovered the billing improprieties in December.
Tyson Foods sued Pasco, Wash.-based Easterday Ranches last month claiming it was billed beginning in 2016 for the feeding of more than 200,000 head of cattle that did not exist.
Tyson reported to shareholders a “misappropriation of company funds” by one of its suppliers in late December with an 8-K filing with the U.S. Security and Exchange Commission.
At that time, Tyson did an internal review of Easterday Ranches’ account with the assistance of outside advisors.
Tyson estimated in December Easterday’s fraud created an overstatement of $285 million in the value of Tyson’s live cattle inventory at year-end.
Tyson said Easterday represented about 2% of the cattle supplied to its beef segment between 2017 and 2020.
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