The San Francisco city attorney will file on Tuesday the nation’s first government lawsuit against food manufacturers over ultraprocessed fare, arguing that cities and counties have been burdened with the costs of treating diseases that stem from the companies’ products, The New York Times’ Heather Knight reports. David Chiu, the city attorney, told The New York Times that he will sue 10 corporations that make some of the country’s most popular food and drinks. Ultraprocessed products now comprise 70 percent of the American food supply and fill grocery store shelves with a kaleidoscope of colorful packages, the publication adds. Shares of Kraft Heinz (KHC), PepsiCo (PEP), Coca-Cola (KO), and Mondelez (MDLZ) are trading down this morning following the news.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Published first on TheFly – the ultimate source for real-time, market-moving breaking financial news. Try Now>>
Read More on KHC:
- Video: Here’s who Wall Street calls the winners from food tariff relief
- Wall Street picks winners among food stocks benefiting from tariff relief
- Elon Musk Warns Bill Gates over Long-Running Tesla (TSLA) Short Bet
- Trump Trade: Trump ends reciprocal tariffs on food items including meat
- JPMorgan sees three major beneficiaries from reduced agricultural tariffs