Turkey Price Fixing Class Actions Face Dismissal Bid

UPDATE: On Oct. 26, 2020, a federal judge cut several claims from the turkey price-fixing class action lawsuit.

A pair of turkey price fixing class action lawsuits face a motion to dismiss by Butterball, Cargill, Perdue, Tyson, and other producers, along with a third-party information exchange platform.

The class action lawsuits were filed by direct buyers, a bakery and catering company, and consolidated in Illinois federal court. Plaintiffs in the cases allege that major producers conspired to drive up the costs of the Thanksgiving staple for consumers.

According to the turkey price fixing class action lawsuits, the supply of turkeys is a $5 billion industry in the United States with a small number of companies at the top providing all of the supply. The plaintiffs took aim at major turkey producers, as well as Kraft Heinz, and a data company that provides pricing information.

The turkey price fixing class action lawsuits claimed that these producers engaged in a conspiracy from at least 2010 through 2017 to artificially inflate prices for direct purchasers of turkey products.

Additionally, the plaintiffs accused a third-party data company of facilitating the conspiracy, allowing the companies to “exchange sensitive information about their production and supply of turkey.”

The complaints alleged the defendants violated laws in New York and 27 other states, as well as federal antitrust laws.

The turkey producers and data company, Agri Stats Inc., now argue that the plaintiffs cannot support their claims that the companies decreased supply in order to inflate prices.

“Plaintiffs do not tie defendants’ alleged information exchange to any anti-competitive effects. They do not plead that any defendant — individually or in coordination with any other defendant — took any actions to decrease supply or increase prices during the time period at issue,” one of the defendants’ motions to dismiss argues.

“Instead, plaintiffs rely entirely on aggregated, industry-wide data they claim shows supply decreases and price increases in the turkey industry, and they ask this court to infer that each defendant acted consistently with that data.”

According to the defendants, this data is not enough to support the plaintiffs’ claims under federal antitrust laws.

The motions to dismiss the turkey price fixing class action lawsuit also attempt to buck claims that the industry’s move to the use of Agri Stats was a part of the conspiracy to drive up prices of turkey products.

“Plaintiffs also allege no facts suggesting that any defendant’s use of Agri Stats led to increased prices or decreased production for any turkey product,” states one of the motions to dismiss.

“Plaintiffs do not attempt to show an effect on pricing or production by, for example, comparing data from before and after defendants began using Agri Stats.”

The defendants also argue that a closer look at the data the plaintiffs claim supports their allegations of turkey price fixing show that the prices simply show a market reaction to an increase in production of the product in certain years and a decrease in other years – numbers that do not support allegations of major changes in the production of turkey products from 2010 to 2016.

The defendants also take issue with one the class action lawsuits being heard in Illinois federal court, pointing out that the plaintiff in that case has made no allegations under Illinois law, nor has the company asserted that it purchased turkey products in that state.

Kraft Heinz is also attempting to exit the turkey price fixing class action lawsuit, separately from the turkey producers and Agri Stats. Kraft argues that it does not produce turkey products and is merely a buyer and, as such cannot take part in fixing the prices or supply of turkeys and should not be a target of anti-competitive allegations.

In its motion to dismiss, Kraft Heinz points out that it is a plaintiff in a separate price fixing class action lawsuit over broiler chickens. The company also notes that similar claims were dismissed against it in a pork price fixing class action lawsuit.

Have you been affected by the alleged turkey price fixing? Tell us what you think in the comment section below!

Lead plaintiff Sandee’s is represented by Robert A. Clifford and Shannon M. McNulty of Clifford Law Offices PC and Jonathan W. Cuneo, Joel Davidow, Daniel Cohen and Blaine Finley of Cuneo Gilbert & Laduca LLP.

Lead plaintiffs Olean and John Gross are represented by W. Joseph Bruckner, Brian D. Clark, Maureen Kane Berg and Simeon Morbey of Lockridge Grindal Nauen PLLP and Steve W. Berman, Shana E. Scarlett and Rio S. Pierce of Hagens Berman Sobol Shapiro LLP.

The Turkey Price Fixing Class Action Lawsuits are Sandee’s Catering v. Agri Stats Inc. et al., Case No. 1:20-cv-02295, and Olean Wholesale Grocery Cooperative, et al. v. Agri Stats Inc., et al., Case No. 1:19-cv-08318, both in the U.S. District Court for the Northern District of Illinois.

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