April 4, 2022

US Justice Department dismiss chicken price-fixing charges

The US Justice Department urged a Denver federal court to dismiss price-fixing charges that were filed against five executives of chicken producing firms following two mistrials that focused on competition in the US$65 billion poultry industry, Reuters reported.

Charges were dropped against Gary Brian Roberts, formerly a Tyson Foods sales executive, Jimmie Little, former Pilgrim's Pride salesman, Timothy Mulrenin, employed by Tyson Foods at the time, Rickie Blake, who worked at George's Inc, and William Kantola, part of sales at Koch Foods Inc.

Charges against five other defendants were not dropped. These are two former chief executives from Pilgrim's Pride and one salesman, as well as two executives from Claxton Poultry Farms.

The court documents suspect chicken prices were fixed between 2012 through 2019 by industry executives.

In 2020, Tyson Foods said it is working with the US Justice Department's investigation under a corporate leniency programme. The programme may protect the firm from criminal prosecution.

In that same year, Pilgrim's Pride agreed to pay a fine of US$110.5 million after agreeing to a plea deal with the US Justice Department over price-fixing allegations on chicken products. Brazilian meatpacker JBS SA owns Pilgrim's Pride.

-      Reuters