Tyson Foods, Pilgrim’s, Mar-Jac Reach Settlements Worth Combined $93.5 Million Over Broiler Chicken Price Fixing Claims

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Broiler Chicken Price Fixing Multidistrict Litigation Overview: 

• Who: Tyson Foods Inc., Pilgrim’s Pride Corp., and Mar-Jac Poultry Inc. have each reached settlements with indirect purchasers of their broiler chicken products.
• Why: The settlements come amid ongoing multidistrict litigation over claims that major poultry producers engaged in wide scale price fixing for their broiler chicken products.
• Where: The multidistrict litigation is being heard in Illinois federal court.

A federal judge has granted the initial approval of three class action settlements worth a combined $93.5 million between three poultry producers and commercial and institutional indirect purchasers. 

Tyson Foods Inc., Pilgrim’s Pride Corp., and Mar-Jac Poultry Inc. all came to separate agreements with indirect purchasers to settle multidistrict litigation (MDL) surrounding claims the companies engaged in price fixing broiler chicken.

Under the settlement agreements, Tyson will pay indirect purchasers $42.5 million, Pilgrim’s will pay indirect purchasers $44 million, while Mar-Jac — which came to an $8 million settlement agreement with direct purchasers last month — will pay around $6 million to indirect purchasers, Law360 reports. 

Class Action Lawsuit Claims Tyson Foods Is One of Several Chicken Producers To Raise Prices and Limit Production

The Class of indirect purchasers claim the companies engaged in price fixing by collectively limiting production of their broiler chicken products, raising prices, and sharing information such as capacity and sales volumes.

Poultry companies were also the target of an anti-competitive probe by the US Department of Justice (DOJ), which revealed its findings in 2019. The federal agency has since indicted four executives, including the CEO of Pilgrim’s and the president of Claxton Poultry, Law360 reports. 

Tyson has said it is cooperating with the DOJ and will be applying for leniency. 

The settlement comes on the heels of a $181 million class action settlement tied to the same MDL that includes contributions from Tyson, Fieldale Farms, George’s Inc., Pilgrim’s, Peco Foods, Inc., and Mar-Jac. 

Have you indirectly purchased fresh or frozen chicken from Tyson, Pilgrim’s, or Mar-Jac? Let us know in the comments! 

The indirect purchasers were represented by Daniel E. Gustafson, Daniel C. Hedlund, Michelle J. Looby, Joshua R. Rissman and Brittany N. Resch of Gustafson Gluek PLLC, and Adam J. Zapala, Tamarah P. Prevost and James G. Dallal of Cotchett Pitre & McCarthy LLP. 

The Broiler Chicken Price Fixing MDL is In re: Broiler Chicken Antitrust Litigation, Case No. 1:16-cv-08637, in the U.S. District Court for the Northern District of Illinois.

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