A New York retirement fund, Westchester Putnam Counties Heavy and Highways Laborers Local 60 Benefit Funds (union pensions), sued Sadia SA, the Brazilian pork and poultry giant, over shareholder losses. The class action was filed in the U.S. District Court of Manhattan.
Sadia recently lost more than US$350 million in foreign currency exchanges, which led to the sacking of its financial director and resignation of its CEO. Making matters worse was the fact its competitor, JBS SA, made more than US$400 million profit during the same period on similar schemes.
The suit claims Sadia was speculating in the money market in hopes of making additional cash, which backfired causing the unnecessary losses.