Kaytee Accused Of A Big Bird Fraud

WACO, TEXAS (CN) - Kaytee Products defrauded Perfect Birds by selling it 65,000 birds in 789 stores - all the birds in Kaytee's "Preferred Birds" business - without disclosing that the birds had been exposed to a contagious disease and would have to be quarantined, Perfect Birds claims in Federal Court.

It claims Kaytee executives learned of the contagious exposure in emails on Nov. 9 and 11, 2007, but sold the birds anyway on Dec. 4. Perfect says it stands to lose its estimated $190,000 weekly income during the length of the quarantine.

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