Montana Senator Jon Tester led a bipartisan letter to the U.S. Securities and Exchange Commission (SEC) pressing the agency to block JBS’s request to be a publicly traded company on the New York Stock Exchange (NYSE), citing the multi-national corporation’s history of “systemic corruption.” Tester has repeatedly worked to hold JBS and the four big meat packers who control more than 80% of the beef industry accountable for their anticompetitive practices.
“While Montana ranchers work tirelessly to produce the best beef in the world, massive multi-national corporations like JBS undercut their efforts by engaging in anticompetitive practices and price gouging consumers,” said Tester. “I have serious concerns about the risks JBS would pose U.S. investors as a publicly traded company given their track record of corruption, and I’ll continue to lead the charge in Congress to hold the big meatpackers accountable and break up their unfair consolidation of the industry.”
In their letter to the SEC, Tester and a bipartisan group of his Senate colleagues wrote that they “urge the SEC protect the integrity of U.S. capital markets and the legal rights of U.S. investors by exposing the risks that JBS poses to potential shareholders, including its track record of corruption, human rights abuses, monopolization of the meatpacking market, as well as environmental risks.” The Senators concluded their letter by emphasizing that, “Approval of JBS’ proposed listing would subject U.S. investors to risk from a company with a history of blatant, systemic corruption.”
The lawmakers detailed JBS’ extensive international corruption record as well as the bribery scheme organized by JBS owners Joesley and Wesley Batista to acquire U.S. meat producer Pilgrim’s Pride in 2009: “In total, JBS estimates its current criminal exposure at $463.5 million, as well as $2.1 billion for ongoing civil, tax, and labor litigation claims. These are startling figures for a company that now seeks to avail itself of the privilege of having its shares traded on the New York Stock Exchange.”
The lawmakers also expressed concern for the potential environmental impact, citing a recent investigation conducted by the U.S. Senate Finance Committee into JBS’ ties to deforestation: “Dozens of journalistic and NGO reports have shown that JBS is linked to more destruction of forests and other ecosystems than any other company in Brazil. The company has made repeated claims that it will eliminate deforestation but has not taken meaningful steps to do so, despite its direct knowledge of extensive deforestation in its supply chain.” The lawmakers also highlighted that the Brazilian company was at the center of a whistleblower complaint filed with the SEC that alleged JBS’s Sustainability-Linked Bonds (SLBs) framework defrauds investors. Mighty Earth, the environmental organization behind the complaint, has called for JBS’ IPO to be postponed until a determination is made by the SEC.
Tester has introduced and sponsored a number of bills aimed at bringing transparency and restoring fairness to the meatpacking sector of the U.S. cattle industry. Early last year Tester re-introduced his bipartisan Cattle Price Discovery and Transparency Act to increase market transparency by establishing minimums for negotiated sales and requiring clear reporting of marketing contracts, and his Meatpacking Special Investigator Act to combat anticompetitive practices in the meat processing industry by appointing a USDA special investigator with subpoena power to enforce the nation’s anti-trust laws. Last January, Tester introduced his bipartisan American Beef Labeling Act to reinstate mandatory country of original labeling (MCOOL) for beef.
In February of 2023, Tester introduced bipartisan legislation to suspend Brazilian beef imports to the U.S. until experts can conduct a systemic review of the commodity’s impact on food safety and animal health.
The letter was led by U.S. Senator Cory Booker (D-N.J.). Along with Wyden, the letter is signed by U.S. Senators John Barrasso (R-Wyo.),Richard Blumenthal (D-Conn.), Sherrod Brown (D-Ohio), John Fetterman (D-Pa.), Josh Hawley (R-Mo.), Robert Menendez (D-N.J.), Chris Murphy (D-Conn.), Marco Rubio (R-Fla.), Bernard Sanders (I-Vt.), Jon Tester (D-Mont.), Chris Van Hollen (D-Md.), Elizabeth Warren (D-Mass.) and Peter Welch (D-Vt.).
You can read the full letter to the SEC HERE.
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Sens. Tester & Wyden
