The share price of Charoen Pokphand Foods Public Company Limited (SET: CPF) at the time of 15.56 on Tuesday was at THB 23.50, decreasing by THB 0.50 or 2.08%. The dip could be due to a recent class action lawsuit against the company.
On Tuesday, the Bangkok South Civil Court granted permission for a class action lawsuit to proceed against CPF, filed by a group of farmers. The farmers allege that the company’s business operations have harmed the ecosystem and their livelihoods.
This environmental class action case is divided into two groups: aquaculture farmers and local fishermen from Samut Songkhram Province. They are seeking compensation for income loss over the past seven years, from 2017 to 2024, totaling over THB 2,486 million.
The court concluded that the case involves common legal and factual issues affecting a large number of plaintiffs. Proceeding as a class action will alleviate the burden on the court and plaintiffs who may lack the resources for individual lawsuits. Thus, the court has authorized the case to proceed as a class action.
However, this decision merely allows the case to be tried as a class action and does not imply any guilt on CPF’s part. The company’s liability or wrongdoing will be determined through a judicial process to evaluate evidence in court.
A CPF representative stated that the company adheres to business standards emphasizing environmental sustainability. CPF maintains that its operations do not contribute to the alleged issues. The company intends to appeal and will defend itself using scientific evidence and factual data, following judicial procedures.
Acting Sub Lt. Somchai Amin, Chairman of the Environmental Litigation and Operations Subcommittee of the Lawyers Council, mentioned that both parties have a seven-day period to file an appeal before a new court hearing is scheduled.
