Largest Settlement in Seven-Year Antitrust Case
Pilgrim’s Pride, one of the largest poultry processors in the United States, has agreed to pay $100 million to settle claims that it conspired with other industry giants to underpay chicken farmers. The settlement, which is the final and by far the largest in the seven-year-old antitrust case, was filed on Friday in the U.S. District Court in Muskogee, Oklahoma. The settlement now awaits approval by U.S. District Judge Robert Shelby.
Allegations of Conspiracy to Suppress Farmers’ Pay
The litigation centered on allegations that major poultry producers, including Pilgrim’s Pride, colluded to keep farmers’ pay artificially low. The companies were accused of sharing confidential information about compensation and agreeing not to recruit each other’s farmers, effectively suppressing wages for those raising the chickens.
As the last remaining defendant in the case, Pilgrim’s Pride’s settlement is a significant milestone. If approved, it will bring the total recovery in the case to $169 million, excluding legal fees and other expenses.
Other Settlements in the Case
Before Pilgrim’s Pride agreed to the settlement, other major poultry producers had already reached agreements to resolve the claims against them. Tyson Foods settled for $21 million, Sanderson Farms for $17.75 million, Koch Foods for $15.5 million, and Perdue Foods for $14.75 million.
Despite agreeing to the settlement, Pilgrim’s Pride has denied any wrongdoing in the case. The company, headquartered in Greeley, Colorado, did not immediately respond to requests for comment regarding the settlement.
Impact on Chicken Farmers
Gary Smith, the attorney representing the farmers, described the settlement as an “outstanding” result and noted that it is likely the largest antitrust settlement ever secured against a meatpacker or poultry processor. The settlement covers a certified class of 24,354 chicken growers who provided land, labor, and equipment to raise chickens between January 27, 2013, and December 31, 2019.
These growers, often referred to as contract farmers, raise chickens until they are ready for slaughter and then return them to the poultry producers. The settlement is expected to provide significant compensation to these farmers, who have long argued that their pay was kept unfairly low due to the alleged collusion among poultry giants.
