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Poultry Processing & Slaughter
on October 3, 2011

Pilgrim's loses El Dorado poultry grower lawsuit

2009 closing of poultry processing plants under scrutiny

Roughly $25 million in damages has been awarded to El Dorado, Ark., poultry growers who supplied stock to Pilgrim's and sued the company in 2009 claiming violation of contracts. 

Pilgrim's closed its El Dorado processing plant and two others — one in Douglas, Ga., and one in Farmerville, La. — in mid-2009 after filing for bankruptcy protection in 2008. The judge who heard the case ruled that Pilgrim's was trying to manipulate the price of chicken by closing the processing plants.

The same judge will now hear the part of the lawsuit involving poultry growers connected to the Farmerville plant.  

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