Wayne Farms was one of six poultry integrators originally accused of conspiring with other top poultry companies to limit the supply and drive up the price of chicken to be cleared of such wrongdoing.
In a recent decision in the U.S. District Court for the Northern District of Illinois, Judge Thomas M. Durkin said there was insufficient evidence to prove that Wayne Farms, as well as Perdue Farms, Fieldale Farms, Case Farms, Claxton Poultry and Foster Farms ever took part in a conspiracy, which was alleged in a series of class-action lawsuits.
Durkin wrote that while the plaintiffs cited multiple documents that they argue was proof that Wayne Farms agreed with competitors to reduce the supply, most of the documents produced were simply evidence of Wayne Farms’ supply reductions or that company representatives attended industry meetings and events. However, neither of those matters brought to the court’s attention showed evidence that Wayne Farms reached any sort of agreement with its competitors.
Durkin also addressed that Wayne Farms leaders were made aware that other competitors were reducing its supply, but again, there was no evidence it agreed to do so as part of a conspiracy.
“It is possible that a producer who knows that its competitors are conspiring would want to join that conspiracy. But it is equally possible that the producer would decide to remain on the sidelines and reap the benefits of decreased supply without risking the legal peril of joining the conspiracy. Merely observing in an internal email what the larger players are doing is not enough,” Durkin wrote.
Company responds to judgment
The situation with Wayne Farms is different than the other five poultry producers who were cleared of the allegations, because Durkin also wrote that jurors could potentially find sufficient evidence that Tyson Foods, Pilgrim’s Pride, Sanderson Farms, Harrison Poultry, Koch Foods, Mountaire Farms, Keystone Foods, O.K. Foods, Peco Foods, House of Raeford Farms and Simmons Foods could have conspired. Wayne Farms and Sanderson Farms merged in 2022.
In response to the judge’s opinion, Jeremy Kilburn, Wayne-Sanderson Farms chief legal and compliance officer, said: “Wayne-Sanderson Farms is pleased with the court's decision on June 30 to grant our request for summary judgement regarding Wayne Farms LLC in the Broiler Chicken Antitrust Litigation, and the court’s conclusion that many of the other key allegations by the plaintiffs … fail as a matter of law. This ruling validates what has been Wayne Farms’ position since the day these suits were filed: Wayne Farms acted lawfully and was not part of any conspiracy to restrain supply or fix prices.
“Although we're disappointed in the court's decision regarding Sanderson Farms, we're looking forward to defending these claims using new motions based on the court’s favorable rulings of June 30, and at trial if needed. We are confident that the facts, when presented, will demonstrate that the actions of Sanderson Farms and its former leadership were lawful as well."
Also earlier accused of being part of a conspiracy but cleared by Durkin of any wrongdoing in these lawsuits was Agri Stats, which provides benchmarking reports for the broiler chicken industry.
