August 22, 2024
Pilgrim's Pride agrees to US$100 million settlement in antitrust case over chicken farmer pay
Pilgrim's Pride, one of the largest poultry processors in the US, has agreed to pay US$100 million to settle claims that it conspired with other companies to underpay chicken farmers, Ag Web reported.
This settlement marks the final and largest resolution in the seven-year-old antitrust case.
The preliminary settlement was filed with the US District Court in Muskogee, Oklahoma, and now awaits approval from US District Judge Robert Shelby, who normally presides in Utah. While Pilgrim's Pride agreed to the settlement, the company denied any wrongdoing.
The lawsuit focused on accusations that major poultry producers colluded to suppress farmers' pay by sharing confidential compensation information and agreeing not to recruit one another's farmers.
Pilgrim's Pride is the last defendant to settle in the case. Should the agreement be approved, the total recovery in the lawsuit will amount to US$169 million, after legal fees and other expenses are deducted.
Prior settlements include payments from Tyson Foods, Sanderson Farms, Koch Foods, and Perdue Foods. These companies settled for US$21 million, US$17.75 million, US$15.5 million, and US$14.75 million, respectively.
Pilgrim's Pride, headquartered in Greeley, Colorado, did not immediately respond to requests for comment.
Gary Smith, an attorney representing the farmers, described the settlement as an "outstanding" result, noting that it is the largest antitrust settlement reached by any meatpacker or poultry processor.
The settlement applies to a certified class of 24,354 farmers, known as "growers," who were active between January 27, 2013, and December 31, 2019. Growers provide land, labour, and equipment to raise chickens, which are then returned to poultry producers for slaughter.
- Ag Web
