A class-action lawsuit filed against Sanderson Farms by some investors cannot be revived.
The investors, in their initial suit, alleged that Sanderson Farms and other top poultry companies colluded in an effort to inflate the price of chicken as early as 2008. They also alleged that Sanderson Farms concealed its role in the alleged collusion, according to a report from Bloomberg Law.
However, the Second U.S. Circuit Court of Appeals ruled on December 10 that the shareholders filing the suit failed to show that any of Sanderson Farms’ financial disclosures were misleading, or how its alleged conspiracy with other poultry companies took place or impacted commerce.
Numerous civil lawsuits that allege collusion between top poultry 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.
The U.S. Department of Justice (DOJ) in June filed a motion to intervene in such lawsuits and is conducting its own investigation.
In describing such lawsuits, Sanderson Farms has said they “are wholly without merit,” and that the company is committed to “vigorously” defending itself in court.
Other top companies named in lawsuits that allege poultry industry collusion include Tyson Foods, Pilgrim’s Pride, Perdue Farms, Koch Foods, Wayne Farms, Foster Farms, Mar-Jac Poultry, Fieldale Farms, Claxton Poultry Farms, House of Raeford Farms, Mountaire Farms, Peco Foods, Simmons Foods, George’s, OK Foods and Harrison Poultry.
Sanderson Farms, headquartered in Laurel, Mississippi, is the third largest poultry company in the United States, trailing only Tyson Foods and Pilgrim’s Pride. According to the WATTAgNet Top Poultry Companies Database, processed 82.5 million pounds of ready-to-cook chicken on a weekly basis in 2018.
The company has 11 slaughter plants, one further-processing plant, 10 hatcheries and 8 feed mills.
