Judge Approves Tyson Foods’ $4.6M Turkey Price-Fixing Class Action Settlement

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Tyson Foods Turkey Price-Fixing Class Action Settlement Overview:

• Who: Tyson Foods Inc has inked a $4.62 million settlement with direct turkey purchasers, including wholesalers and distributors.
• Why: The deal resolves price-fixing claims brought by the turkey purchasers.
• Where: The settlement was reached in Illinois federal court.

Tyson Foods Inc will pay $4.62 million to direct turkey buyers in a class action settlement resolving turkey price-fixing claims against the poultry company.

In an order filed Feb. 3 in an Illinois federal court, U.S District Judge Virginia M. Kendall signed off on the deal, which is the first settlement in a run of antitrust cases against Tyson and other poultry producers. 

The class benefiting from the settlement includes anyone who purchased turkey directly from the company and its related entities for personal use from Jan. 1, 2010, through Jan. 1, 2017. 

The settlement ended the antitrust claims filed against Tyson Foods by direct buyer plaintiffs, New York-based Olean Wholesale Grocery Cooperative and Pennsylvania-based food distributor John Gross and Co. Inc. in litigation that dates back to December 2019.

“The Released Parties are hereby and forever released and discharged with respect to any and all claims or causes of action which the Releasing Parties had, have, or in the future may have, arising out of or related to any of the Released Claims as defined in the Settlement Agreement,” the order states. 

Purchasers Alleged That Major U.S. Turkey Producers Illegally Traded Confidential Price Data

The purchasers alleged major U.S. turkey producers, including Butterball LLC, Cargill Inc., Hormel Foods Corp. and Perdue Foods LLC, illegally traded confidential price data and used the information to reduce supply of turkey and artificially ramp up prices for seven years.

Tyson’s $4.62 million settlement follows a $221 million deal that Tyson cut last year to escape claims it had participated in a scheme to increase the price of chicken, Law360 reports.

In October last year, an Illinois federal judge granted the initial approval of three class action settlements worth a combined $93.5 million between Tyson Foods Inc., Pilgrim’s Pride Corp. and Mar-Jac Poultry Inc. over price-fixing broiler chicken.

Under that settlement agreement, Tyson will pay indirect purchasers $42.5 million.

What do you think of the allegations against Tyson? Let us know in the comments! 

The direct purchaser plaintiffs are represented by Steve W. Berman, Shana E. Scarlet and Rio S. Pierce of Hagens Berman Sobol Shapiro LLP and W. Joseph Bruckner, Brian D. Clark, Maureen Kane Berg, Simeon Morbey, Steven E. Serdikoff and Leona B. Ajavon of Lockridge Grindal Nauen PLLP.

The indirect buyers are represented by Robert A. Clifford and Shannon M. McNulty of Clifford Law Offices PC; Jonathan W. Cuneo, Blaine Finley and Evelyn Li of Cuneo Gilbert & LaDuca LLP; and John “Don” Barrett, Katherine Barrett Riley and Sarah Sterling Starns of Barrett Law Group PA.

The Tyson Foods Turkey Class Action Lawsuit is In Re Turkey Antitrust Litigation, Case No. 1:19-cv-08318, in the U.S. District Court for the Northern District of Illinois. 

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