Sanderson Farms not guilty in alleged broiler chicken price-fixing conspiracy, jury finds

Sanderson Farms broiler chicken price-fixing case overview: 

• Who: A federal jury in Illinois has found Sanderson Farms not guilty of participating in an alleged price-fixing conspiracy for broiler chicken. 
• Why: A group of direct chicken buyers claimed Sanderson worked with other chicken producers to allegedly raise the price of broiler chicken by limiting its supply. 
• Where: The broiler chicken price fixing trial was held in Illinois federal court. 

A federal jury in Illinois has found Sanderson Farms not guilty of participating in an alleged conspiracy to raise prices on broiler chicken by limiting its supply. 

A group of chicken buyers claimed Sanderson worked alongside at least a dozen other chicken producers to limit its availability of chicken between 2008 and 2012, in an alleged effort to boost profits. 

“We are pleased that, after a full and fair trial, the jury has rendered a unanimous verdict in favor of Sanderson Farms on all counts,” Jeremy Kilburn, Sanderson chief legal & compliance officer, said in a statement on the verdict. 

The not guilty verdict will not affect more than $284 million in settlements reached by a class of in excess of 3,000 direct chicken purchasers and producers Tyson and Pilgrim’s Pride, among producers accused of being part of the alleged conspiracy, reports Law360. 

Sanderson found not guilty after being accused of leading alleged price-fixing scheme 

A total of 49 individual direct purchasers — including grocery store companies Kroger, Publix and Albertsons — reportedly took part in the Sanderson trial after having previously opted out of being part of the settlement class. 

The buyers argued Sanderson had combined forces with the major broiler chicken producers  Pilgrim’s Pride and Tyson Foods to allegedly bring in almost a dozen more companies into their alleged broiler chicken price fixing scheme, according to Law360. 

The alleged scheme, the buyers claimed, led to a pair of supply dips between 2008 and 2012 that were unprecedented in the industry and led to a record length of profitability in the broiler chicken industry. 

Sanderson had been accused of acting as the ringleader for the alleged price fixing scheme, which the chicken buyers argued caused them to be overcharged in excess of $2 billion, Law360 reports. 

The company agreed to pay $17.75 million earlier this year to resolve claims revolving around the alleged role it played in the alleged broiler chicken price fixing scheme. 

Have you been overcharged for broiler chicken? Let us know in the comments.

The Sanderson Farms broiler chicken prices case 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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