September 14, 2022

 

US poultry workers await approval for US$85 million antitrust deal

 

 

A class of present and former poultry employees, who alleged major US chicken processors such as Sanderson Farms, Wayne Farms, and Cargill conspired to suppress wages, has petitioned a federal court in Maryland to accept US$84.8 million in fresh settlements, Reuters reported.

 

This brings the litigation's total recovery to more than US$134 million. The settlement was given preliminary approval by district judge Stephanie Gallagher.

 

Wayne Farms announced it would pay US$31.5 million, and Sanderson Farms agreed to pay US$38.3 million to settle claims. Cargill agreed to pay US$15 million.

 

The agreements included denials from the firms of any wrongdoing.

 

Cargill said they are delighted to put the cost and distraction of litigation behind them.

 

Representatives from Sanderson and Wayne did not immediately respond to requests for comment.

 

The push for preliminary approval follows the U.S. The three defendants who stated they would make restitution payments to poultry workers in the ongoing private class action reached a separate federal settlement with the Justice Department in July.

 

In its lawsuit, the U.S. claimed that chicken processors engaged in a scheme to stifle competition by sharing information about pay and benefits. The defendants consented to a 10-year compliance monitor being imposed.

 

One of the defendants who did not reach a settlement, Perdue Farms, declined to comment. Tyson Foods, another defendant, declined to respond.

 

The plaintiffs' attorneys said any request for compensation would be considered separately from the workers' settlement but did not specify how much in legal fees they planned to ask for.

 

-      Reuters