DLA Piper secured a significant victory for Tyson Foods, Inc. (Tyson), one of the world’s largest food companies, in obtaining a damages award of US$55 million in benefit-of-the-bargain damages, plus pre- and post-judgment interest, following an eight day trial in November 2024 in the Superior Court of the State of Delaware.
In 2019, Tyson filed a lawsuit against American Proteins, Inc. (API) for fraudulent inducement and breach of contract arising out of Tyson’s US$865 million acquisition of API’s poultry rendering operations.
Tyson alleged that API fraudulently induced Tyson to enter into the acquisition, causing Tyson to overpay for API’s business. After closing, Tyson discovered API’s fraud which led to diminished financial performance post-closing.
In its opinion, the Delaware Superior Court held that Tyson proved that API fraudulently induced Tyson to enter into the acquisition and found that “API obtained a fraud-fueled premium” from Tyson. The Court further rejected all of API’s counterclaims, in which API asserted, among others, claims of fraudulent inducement and tortious interference.
The DLA Piper trial team included Partners Brett Ingerman, Dale Cathell (both Baltimore), and David Horniak (Washington, DC), and Associates PJ Artese (Baltimore), Olivia Houston (Washington, DC), and Stephen Barrett (Wilmington).