Pilgrim's Pride and Tyson Foods have settled price-fixing litigation by a group of poultry buyers that accused them of violating U.S. antitrust law by conspiring to inflate chicken prices.
Pilgrim's Pride agrees to $75M settlement with some customers
Agreement doesn't apply to companies such as Target and Chick-fil-A, which also are suing the company.
By Jonathan Stempel, Reuters
January 13, 2021 at 3:46AM
Pilgrim's Pride, owned mainly by Brazil's JBS, will pay $75 million to settle claims by purchasers that bought chickens directly from the company, officials said Monday. The size of Tyson's settlement with the same purchasers was not disclosed.
Neither company admitted liability, and both said settling was in their best interests.
Both settlements require approval by a federal judge in Chicago.
Neither affects claims by "indirect" purchasers, which include restaurant and supermarket operators such as Chick-fil-A, Kroger and Target as well as ordinary consumers.
They also do not affect claims against other defendants, such as Sanderson Farms and Perdue Farms.
The settlement by Pilgrim's Pride, the country's second-largest chicken producer that has a plant in Cold Spring, Minn., is the largest in more than four years of litigation by restaurants, supermarkets and food distributors over alleged price-fixing in the $65 billion chicken industry.
Already, Pilgrim's Pride entered into a $110.5 million plea agreement with the U.S. Department of Justice on charges of restraint of competition.
The company's former CEO and three other company executives also were indicted.
A few smaller chicken producers previously reached similar settlements with customers totaling $13 million.
Similar litigation has been pending in Minneapolis federal court accusing Tyson, another JBS unit and other pork producers of conspiring to inflate pork prices by limiting supply.
The Pilgrim's settlement follows that company's agreement in October to pay a $110.5 million fine to resolve a U.S. Department of Justice criminal price-fixing probe.
Last year, the Justice Department also filed criminal price-fixing and bid-rigging charges in Denver against 10 poultry industry executives. All have pleaded not guilty.
about the writer
Jonathan Stempel, Reuters
From deals that are too good to be true to packages stolen off porches, there are many ways shoppers can lose money while buying gifts this holiday season.
