Lawsuit: Tyson exploited Easterday’s face, name and fame

Published 4:30 pm Monday, May 8, 2023

Cody Easterday’s lawyers refiled a lawsuit May 5 against Tyson Fresh Meats, sharpening allegations that the Arkansas-based company reneged on a verbal deal to share profits from selling “Cody’s Beef” in Japan.

The amended complaint gives more details and responds to U.S. District Judge Stanley Bastian, who said he would dismiss the suit unless Easterday shows the alleged misconduct took place in Eastern Washington.

Easterday’s original complaint didn’t provide grounds to justify hauling Tyson into an Eastern Washington courtroom to answer allegations over a Japanese business venture, Bastion ruled.

The new filing seeks to overcome the shortcomings identified by Bastian by detailing contacts Easterday had with Tyson and Nippon Ham executives in south-central Washington.

The new court filing includes a photo of Easterday with three Japanese visitors. A Tyson employee texted the photo and commented, “Cody and his fan club! They told him he is famous in Japan … seriously!”

Easterday, 51, is serving an 11-year term in a federal prison in Lompoc, Calif., for a “ghost cattle” scheme that defrauded Tyson out of $233 million. Easterday sold his feedlots and farms, but still owes Tyson $177.1 million in court-ordered restitution.

Easterday, who was a longtime cattle supplier for Tyson’s beef plant in Pasco, has filed two lawsuits against Tyson. The other suit, also pending before Bastian, alleges Tyson abused its dominant position as a cattle buyer to hold down Easterday’s profits.

The Cody’s Beef suit alleges Tyson broke an oral contract to share profits from its joint venture with Nippon Ham. Tyson has refused to provide an accounting of the campaign’s proceeds, according to the suit.

Tyson denies any wrongdoing and argues that it settled all claims with Easterday Ranches in bankruptcy court.

According to the amended complaint, Tyson employees approached Easterday in 2013 about helping “kickstart Japanese sales.”

Tours by Nippon Ham executives of Easterday feedlots “were an instant success,” the suit states. “Mr. Easterday quickly became a celebrity in the Japanese meat industry.”

A Tyson employee reportedly asked Easterday for “a decent mug shot” to use in promotions. Easterday had his picture taken at a Kennewick studio, and the photo was used on labels and in brochures.

“Seeing the producer’s face through the beef provides a sense of reassurance!” a sales brochure read.

The Cody’s Beef campaign continued until 2022, at least a year after Easterday pleaded guilty in 2021 to defrauding Tyson, according to the lawsuit.

Prior to being sentenced, Easterday asked Tyson to account for the campaign’s profits. Easterday didn’t demand his share before then because of his false billing of Tyson, the suit acknowledges.

Easterday’s lawyers drew Bastian’s attention to another lawsuit between Tyson and a cattle supplier in New Mexico. Zia Agricultural Consulting claimed Tyson broke a verbal agreement and underpaid for cattle.

A jury last year awarded Zia $2.5 million in actual damages and $8 million in punitive damages. U.S. District Judge Margaret Strickland rejected Tyson’s motion for a new trial.

Strickland noted the supplier presented evidence that Tyson regularly took advantage of a lack of written agreements with cattle suppliers to later disavow representations.

A Tyson spokeswoman said Monday the company had no comment.

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