Final Approval Given For $181M Settlement Over Broiler Chicken Price-Fixing Claims

Broiler Chicken Price-Fixing Class Action Settlement Overview: 

• Who: A judge has given final approval for a $181 million settlement agreement between end-user consumers and Peco Foods, Fieldale Farms, George’s, Tyson Foods, Pilgrim’s Pride and Mar-Jac Poultry. 
• Why: The settlement resolves claims that the poultry companies conspired to fix the price of broiler chicken.
• Where: The settlement was approved in Illinois federal court.

A federal judge in Illinois gave final approval for a $181 million settlement between six poultry producers and end-user consumers who claimed the companies conspired to fix broiler chicken prices. 

The deal was reached between the consumer plaintiffs and Peco Foods, Fieldale Farms, George’s, Tyson Foods, Pilgrim’s Pride and Mar-Jac Poultry. 

The settlement amounts varied by company. Tyson and Pilgrim’s paid the most, with contributions of $99 million and $75.5 million, respectively. Peco and George’s each contributed $1.9 million while Fieldale and Mar-Jac put in $1.7 million and $1 million, respectively. 

The Department of Justice (DOJ) has also been investigating poultry companies for price-fixing in an ongoing anti-competitive probe.

Multiple Execs Indicted In Alleged Scheme

Multiple executives have so far been indicted for the alleged scheme, however the DOJ suffered a setback earlier this month after a deadlocked jury in Colorado led to a mistrial in a case against 10 poultry executives, Law360 reports. 

Consumers are still pursuing claims against 12 additional poultry companies, including, among others, Koch Foods and Perdue Farms. 

The judge determined cash compensation was preferable to coupons, which he noted could expire, Law360 reports.

The settlement will be available to millions of class members, with the vast majority of them notified via email. 

Tyson, Pilgrim’s and Mar-Jac previously agreed to a settlement worth $93.5 million to settle broiler chicken price-fixing claims made by commercial and institutional indirect purchasers. 

Indirect purchasers claimed the companies fixed the prices of broiler chickens by raising prices, sharing pertinent information amongst each other and collectively limiting production.

Have you purchased broiler chicken from a company that has been accused of engaging in price fixing? Let us know in the comments! 

The plaintiffs are represented by Hagens Berman Sobol Shapiro LLP and Cohen Milstein Sellers & Toll PLLC.

The Broiler Chicken Price-Fixing Class Action Settlement 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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