Lawsuit accuses broiler companies of price-fixing collusion

A class-action lawsuit has been filed in a federal court, with the plaintiffs accusing the largest poultry producing companies in the United States of a price fixing-scheme.

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Andrea Gantz
Andrea Gantz

A class-action lawsuit has been filed in a federal court, with the plaintiffs accusing the largest poultry producing companies in the United States of a price fixing-scheme.

The law firm Hagens Berman Sobol Shapiro LLP filed the suit on September 14, according to a press release issued by the firm.

The lawsuit alleges the poultry companies killed chickens and destroyed eggs to limit production and raise the price of chicken sold in the United States. Companies the lawsuit names include Tyson Foods, Pilgrim’s, Sanderson Farms, Simmons Foods, Koch Foods, JCG Foods, Wayne Farms, Mountaire Farms, Peco Foods, Foster Farms, House of Raeford Farms, Fieldale Farms, George’s Inc. and O.K. Foods.

Companies will dispute claims

Several of the companies named in the lawsuit indicated that it lacks merit and they will dispute the claims.

Pilgrim’s is aware of the complaint and strongly denies any allegations of market manipulation. The company welcomes the opportunity to defend itself against these claims through the legal process,” Pilgrim’s said in a statement.

Tyson Foods noted cases that allege antitrust matters and price-fixing are common and commonly copied.

“We’re not surprised by the lawsuit, since it’s common for law firms to file copycat cases in antitrust matters. We dispute the claims made in these complaints and will defend ourselves in court,” the company stated.

U.S. egg producers were sued over the implementation of voluntary hen welfare standards which increased the amount of space hens were given in cages. The lawsuits claimed companies that followed the United Egg Producers (UEP) Certified standards conspired to reduce the number of hens producing eggs in the U.S. to raise the price of eggs. Several egg producers reached financial settlements with egg purchasing companies that joined these class action lawsuits. The total cost to the industry in settlements and attorney fees has been estimated to exceed $100 million.

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