October 10, 2016 (Shareholders Foundation) - An investigation on behalf of investors of Sanderson Farms, Inc. (NASDAQ:SAFM) shares over potential securities laws violations by Sanderson Farms and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Sanderson Farms, Inc. (NASDAQ:SAFM) concerning whether a series of statements by Sanderson Farms regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Sanderson Farms, Inc. reported that its Total Revenue rose from over $2.77 billion for the 12 months period that ended on October 31, 2014 to over $2.8 billion for the 12 months period that ended on October 31, 2015 while its Net Income for those respective time periods declined from $249.05 million to $216 million.

Shares of Sanderson Farms, Inc. (NASDAQ:SAFM) grew from $76.65 per share in September 2015 to as high as $98.11 per share on September 29, 2016.

On October 7, 2016, Pivotal Research downgraded the Company's peer, Tyson Foods, Inc. from 'buy' to 'sell,' noting apprehensions about a 'powerfully convincing' class action against Tyson Foods, Inc, Sanderson Farms, Inc, and some of its industry peers as defendants, alleging price collusion in the broiler-chicken market. The complaint alleges that at the beginning of 2008, Tyson Foods, Inc, Sanderson Farms, Inc, and several other companies conspired by sharing proprietary data and reducing production to support prices.
Shares of Sanderson Farms, Inc. (NASDAQ:SAFM) declined on October 7, 2016 to as low as $86.75 per share.