$2.25M Settlement Reached in Broiler Chicken Antitrust Class Action

One poultry producer has agreed to pay $2.25 million to settle a class action alleging they and other fowl companies colluded to drive up the price of broiler chickens.

A nationwide food service provider alleged in their class action lawsuit that 14 poultry producers, including Koch Foods, Tyson Foods, Pilgrim’s Pride, Perdue Farms, and Sanderson Farms schemed to increase the price of broiler chickens by a whopping 50 percent by artificially reducing the supply.

One such producer, Fieldale Farms Corp., has agreed to pay $2.25 million to extract itself from the class action. According to the plaintiffs’ motion supporting the settlement agreement, Fieldale Farms will also provide phone records, financial reports, and employee statements.

“Based on DPPs’ [Direct Purchaser Plaintiffs] extensive factual investigation to date, the cooperation provisions negotiated as part of the settlement enable DPPs to obtain critical additional information regarding the allegations in the complaint,” noted the plaintiffs. “Therefore, based on both the monetary and cooperation elements of the settlement agreement, DPP co-­lead counsel believe this is a fair settlement for the class.”

According to plaintiffs’ motion supporting the settlement, the deal will not affect the recovery by the Class from the remaining poultry producers because they will remain liable for the back-door dealing alleged by the class action lawsuit.

“In addition to not affecting the overall damages, the Settlement should hasten and improve the Class’ recovery by providing DPPs access to information that likely would otherwise only be obtainable through protracted discovery,” the plaintiffs state in their motion asking the Court to preliminarily approve the proposed settlement.

Fieldale Farms has until late August to pay the $2.25 million in cash.

“Fieldale Farms believes its case is strong and that it would achieve success on the merits. Fieldale denies any liability with respect to both the output reduction and the Georgia Dock aspects of the alleged conspiracy, and Fieldale maintains that it did nothing wrong,” say the plaintiffs in their motion.

“But in the interests of avoiding the risk and uncertainty of trial, Fieldale Farms has agreed to settle, and its participation in both the Georgia Dock and Agri Stats gives it valuable and unique insight into two of the primary mechanisms through which the Plaintiffs allege the Defendants implemented a conspiracy,” continue the plaintiffs.

The class action still faces a pending motion to dismiss filed by the poultry producers from last November.

Top Class Actions will post updates to this class action settlement as they become available. For the latest updates, keep checking TopClassActions.com or sign up for our free newsletter. You can also receive notifications when this article is updated by using your free Top Class Actions account and clicking the “Follow Article” button at the top of the post.

The broiler chicken purchasers are represented by Steven A. Hart, Brian Eldridge and Kyle Pozan of Hart McLaughlin & Eldridge, W. Joseph Bruckner, Heidi M. Silton, Elizabeth R. Odette, Brian D. Clark and Simeon A. Morbey of Lockridge Grindal Nauen PLLP and Bruce L. Simon, Clifford H. Pearson, Michael H. Pearson and Bobby Pouya of Pearson Simon & Warshaw LLP.

The Broiler Chicken Antitrust Class Action Lawsuit is Maplevale Farms Inc. v. Koch Foods Inc., et al., Case No. 1:16-cv-08637, in the U.S. District Court for the Northern District of Illinois.