J&F Investimentos, S.A. (“J&F”) was a private investment holding company based in Sao Paulo, Brazil. J&F owned approximately 250 companies in 30 countries worldwide. JBS, S.A., which was controlled by J&F, was the world’s largest meat and protein producer, also based in Sao Paulo, Brazil. Pilgrim's Pride Corporation is an American multi-national food company, and a large producer of chicken.
In a press release dated May 31, 2017, JBS S.A., which was 42% owned by J&F, announced that it had reached a leniency agreement with the Brazilian Federal Prosecutor's Office in connection with the Brazilian "Weak Flesh" investigation. Under the terms of the agreement, J&F would pay the Brazilian government a fine of R$10.3 billion ($3.2 billion US).
On August 3, 2017, Pilgrim's Pride announced in a 10-Q filing that J&F, which was an indirect controlling stockholder of Pilgrim's Pride, was conducting an internal investigation involving improper payments made in Brazil by J&F, certain companies controlled by J&F, and certain officers of J&F (including two former directors of Pilgrim's Pride). J&F engaged outside advisors to assist in the investigation, and part of the investigation would be to determine if any of the misconduct disclosed to Brazilian authorities was connected to Pilgrim's Pride or violated US law. Pilgrim's Pride said it was fully cooperating with J&F's investigation. The outside counsel also was authorized to share results of the internal investigation with the DOJ.
In its 10-K filed on February 21, 2020, Pilgrims Pride said that it had communicated with both the DOJ and the SEC regarding the findings made in its internal investigation.
Though none of the companies ever disclosed that the DOJ and SEC had opened investigations, on October 14, 2020, the DOJ and SEC announced enforcement actions against J&F, JBS, and J&F's co-owners and executives, Joesley and Wesley Batista.
