Jan 06, 2022

Lawsuit: Tyson Foods Shorted Construction Firm Millions

Facility involved includes a processing plant, feed mill and hatchery in Humboldt, TN

A construction company has filed a $3.5 million lawsuit against Tyson Foods and the Industrial Development Board of Gibson County, claiming it was shorted payments for building and designing a poultry processing plant in Humboldt, TN, last year, reports the Tennessee Lookout.

The 375,000-square-foot Tyson facility opened in April 2021 on property owned by the Gibson County board and leased to Tyson.

At the time, Tyson referred to the project as a $425 million investment. The facility includes a processing plant, feed mill and hatchery.

According to the report, the plant’s construction was made possible, in part, by a $20 million state economic investment package.

The federal lawsuit filed on Dec. 29 alleges that Tyson failed to fully pay Gray Construction, the primary contractor on the project. Gray Construction was hired in 2018, but faced a series of delays as a result of other contractors’ missteps, the lawsuit claims.

In some instances the construction company had to incur costs to fix problems caused by other contractors, the lawsuit says. Gray Construction also incurred unforeseen expenses as a result of COVID-19, including providing proper protective equipment.

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