Sanderson Farms settles chicken price-fixing class action

Sanderson chicken price-fixing settlement overview:

• Who: Sanderson Farms has agreed to settle a chicken price-fixing class action lawsuit.
• Why: Sanderson allegedly conspired with other poultry producers to fix the price and supply of broiler chickens.
• Where: The chicken price-fixing class action lawsuit was filed in Oklahoma federal court.

Sanderson Farms is one of the latest poultry producers to reach a settlement over its alleged role in a chicken price-fixing scheme, Law360 reports.

Sanderson Farms reportedly operates nine plants that process more than 8 million broiler chickens each week. Broiler chickens account for nearly all of the chicken consumed in the United States.

Chicken price-fixing lawsuits allege poultry producers conspired to fix price of broiler chickens

In 2016, chicken farmers began filing chicken price-fixing lawsuits against major poultry producers, accusing them of conspiring to fix the price and supply of broiler chickens.

The plaintiffs allege that the defendants illegally shared data on farmers’ compensation to artificially lower the price they would pay them.

The poultry giants allegedly utilized Agri Stats, a third-party data compiler, to establish compensation rates for the chicken farmers. In addition to controlling the prices paid for chickens, the defendants also were able to exert control over certain specifications for the chicken farmers’ facilities.

Last year, U.S. District Judge Robert J. Shelby approved chicken price-fixing settlements with poultry giants Tyson and Perdue. Tyson reportedly agreed to pay $21 million and Perdue agreed to pay $14.75 million to escape the litigation.

Details about the Sanderson settlement were not immediately available. 

“Plaintiffs and Sanderson are working to finalize and document all terms of the proposed class action settlement, which is subject to the Court’s approval,” the court documents state.

DOJ investigation into chicken price-fixing claims leads to Sanderson settlement

The U.S. Department of Justice has investigated claims that the poultry giants violated federal antitrust law. Sanderson previously settled chicken price-fixing claims with the DOJ over allegations they conspired to fix processing plant workers’ wages.

Cargill Inc., Wayne Farms LLC, and consulting firm WMS Webber Meng Sahl & Co. also reached settlements with the DOJ over the same claims.

Chick-fil-A recently reached a chicken price-fixing settlement with Tyson Foods over allegations Tyson conspired to fix and inflate the price of broiler chickens.

What do you think of the chicken price-fixing allegations? Join the discussion in the comments!

The plaintiffs are represented by Hausfeld LLP and Berger Montague.

The chicken price-fixing lawsuit is In re: Broiler Chicken Grower Antitrust Litigation (No. II), Case No. 6:20-md-02977, in the U.S. District Court for the District of Oklahoma.

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