Food Safety

Class action lawsuit filed against Yum! Brands

Chinese Kentucky Fried Chicken restaurants are at issue.

January 29, 2013
KEYWORDS antibiotics / poultry
/ Print / Reprints /
ShareMore
/ Text Size+

Class action lawsuit filed against Yum! Brands

A class action lawsuit has been filed in California against Yum! Brands, the fast food restaurant group that includes Pizza Hut, Taco Bell and Kentucky Fried Chicken. Chinese media reported on Nov. 23, 2012 that chickens sold to KFC had been treated with illegal antibiotics and other drugs. On January 7, 2013, Yum Brands! filed with the SEC to lower its China division’s full-year guidance for same-store sales, causing Yum! Brands’ stock to drop by five percent. The lawsuit alleges that:

  •          Yum! Brands misrepresented the effects of slowing economic trends in China while predicting increased earnings-per-share growth,
  •          Yum! Brands was aware of the results of food safety inspections showing high levels of antibiotics and other drugs in chickens from the Shandong     Luihe group, and
  •          The company continued to buy contaminated chickens until as late as August 2012.

A statement released by Yum! Brands at the time of the Jan. 7 SEC filing says that the company’s food is safe to eat, and KFC in China has very strict food handling and quality control standards. The company says it will continue to cooperate with the Shanghai FDA as it continues its investigation.

Did you enjoy this article? Click here to subscribe to Food Engineering Magazine.

Recent Articles by Shane O'Halloran

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

Fabulous Food Plant: Paramount Citrus

Learn more about this fabulous food plant in Food Engineering's article, found here.

Podcasts

Burns & McDonnell project manager RJ Hope and senior project engineer Justin Hamilton discuss the distinctions between Food Safety and Food Defense as well as the implications for food manufacturers of the Food Safety Modernization Act.
More Podcasts

What was your favorite part of FA&M 2014?

View Results Poll Archive

THE MAGAZINE

Food Engineering Magazine

Food engineering magazine 2014 april cover

2014 April

Catch a preview of the Powder and Bulk Show in this April 2014 edition of Food Engineering. Also, be sure to check out a coffee stick making a real stir and a major advancement in the the pet food industry.
Table Of Contents Subscribe

THE FOOD ENGINEERING STORE

Food-Authentication-Flyer-(.gif
Food Authentication Using Bioorganic Molecules

This text provides critical tools and data needed to augment routine food analysis and enhance food safety by aiding in the detection of counterfeit, and potentially deleterious, foods.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Food Master

Food Master Cover 2014Food Master 2014 is now available!

 

Where the buying process begins in the food and beverage manufacturing market. 

Visit www.foodmaster.com to learn more.

STAY CONNECTED

FE recent tweets

facebook_40.pngtwitter_40px.pngyoutube_40px.pnglinkedin_40px.png