SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 16, 1996
SMITHFIELD FOODS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 0-2258 52-0845861
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
900 DOMINION TOWER
999 WATERSIDE DRIVE
NORFOLK, VIRGINIA 23510
(Address of principal executive (Zip Code)
offices)
Registrant's telephone number, including area code (757) 365-3000
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ITEM 5. OTHER EVENTS
Reference is made to the disclosure appearing in Part I, Item 1 of the
Registrant's Annual Report on Form 10-K for the fiscal year ended April 28,
1996, under the caption "BUSINESS - Regulation," as supplemented by the
disclosures appearing in Part II, Item 2 of the Registrant's Quarterly Report on
Form 10-Q for the fiscal quarter ended July 28, 1996, and Part II, Item 2 of the
Registrant's Quarterly Report on Form 10-Q for the fiscal quarter ended October
27, 1996.
On December 16, 1996, the U.S. Department of Justice ("DOJ") filed a
civil action in the United States District Court for the Eastern District of
Virginia, Norfolk Division, against the Registrant and two of its operating
subsidiaries, The Smithfield Packing Company, Incorporated ("Smithfield
Packing") and Gwaltney of Smithfield, Ltd. ("Gwaltney") seeking civil penalties
for approximately 5,000 alleged violations of the federal Clean Water Act by
Smithfield Packing and Gwaltney at pork processing plants in the Town of
Smithfield, Virginia. The vast majority of the alleged violations are based upon
permit exceedences by Smithfield Packing and Gwaltney occurring from November
1991 to the present which are expressly excused under an administrative consent
order issued in 1991 by the Virginia State Water Control Board (the "SWCB").
Under the 1991 order, the Registrant is obliged to connect its two wastewater
treatment facilities to the public sewer system operated by the Hampton Roads
Sanitation District (the "HRSD") as soon as that system is extended to the Town
of Smithfield. The Registrant connected the Gwaltney wastewater treatment
facility to the public sewer system in June 1996, when that system was first
available; and the Registrant plans to connect the Smithfield Packing wastewater
treatment facility to the public sewer system by the end of March 1997, upon
receiving notice from the HRSD that the public sewer system is ready to accept
the second facility's wastewater. Notwithstanding the fact that the Commonwealth
of Virginia, acting through the SWCB, has primary enforcement responsibility in
the Clean Water Act's cooperative federal-state permitting scheme, and the fact
that the SWCB advised federal authorities of the administrative consent order
when issued, DOJ has taken the position in its suit that the State-issued
administrative consent order does not bar a federal action seeking relief for
permit violations. Each violation is subject to a civil penalty of up to a
maximum of $25,000. The Registrant intends to defend the suit vigorously.
The Registrant reaffirms its belief, based on its knowledge of the
facts and circumstances surrounding the violations and investigations, as
summarized herein and in prior disclosures, that the ultimate resolution of
these matters will not have a material adverse effect on its financial position
or annual results of operations.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
SMITHFIELD FOODS, INC.
(Registrant)
By: /s/ Aaron D. Trub
-----------------------
Aaron D. Trub
Vice President, Secretary and
Treasurer
Dated: December 26, 1996
