The U.S. Department of Justice (DOJ) filed a motion to intervene in cases where plaintiffs allege the nation’s top poultry companies conspired to raise the price of chicken.
Numerous civil lawsuits that allege collusion between top integrators and Agri Stats have been filed, following an initial suit filed by foodservice distributor Maplevale Farms in 2016. The suits have all been remarkably similar, and have been dismissed by those in the industry as frivolous.
In the filing, a federal judge has been asked to halt certain depositions and discovery for six months, “to protect the grand jury’s investigation,” reported USA Today.
In addition to Maplevale Farms, other companies to allege industry collusion include Sysco Corp., U.S. Foods Holding Corp, Winn-Dixie Stores, Walmart, Darden Restaurants, B.J’s Wholesale Club, Kroger, Albertsons Companies, Hy-Vee, Conagra, Kraft Heinz, Nestle and Pinnacle Foods.
Sanderson Farms, the third largest broiler company in the United States, said in a statement issued on June 25 that it had not been subpoenaed in connection with the DOJ investigation, and that it “continues to believe the civil plaintiffs; claims as to Sanderson Farms are wholly without merit, and we are committed to defending the case vigorously.”
Tyson Foods also issued a statement. “We are aware of the Department of Justice’s motion to intervene in the matter and its request for a limited stay of discovery. We do not oppose these efforts and will be fully responsive to department’s investigation as may be requested. These events do not change our view that there is simply no merit to the allegations that Tyson Foods colluded with competitors. We remain committed to vigorously defending ourselves against such baseless allegations,” the company said.
The news of the DOJ’s motion did have an impact on stock prices of publicly traded poultry companies. According to Seeking Alpha, shares of Tyson Foods, the nation’s largest broiler company, were down 2.2 percent, while shares of the second largest poultry company, Pilgrim’s Pride, dropped 1.1 percent on June 25.
Read more on allegations of poultry industry collusion
The series of lawsuits filed against poultry companies have been covered in previous news items and blog posts on WATTAgNet.
See the following blog posts concerning opinions on the lawsuits:
Poultry collusion suit and things that make you go hmmm
Lawyers claiming poultry sector collusion have no shame
