3 poultry executives plead innocent in collusion case

Three of four poultry industry executives who are accused of conspiring to fix chicken prices and rig bids for broilers have entered pleas of not guilty.

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(edwardolive | BigStockPhoto)
(edwardolive | BigStockPhoto)

Three of four poultry industry executives who are accused of conspiring to fix chicken prices and rig bids for broilers have entered pleas of not guilty.

The U.S. Department of Justice (DOJ) announced on June 3 that Jayson Penn, Roger Austin, Mikell Fries and Scott Brady have been indicted on charges related to the alleged collusion, which according to the indictment, allegedly took place from as early as 2012 until at least 2017.

Penn is the global CEO of Pilgrim’s Pride, while Austin is a former vice president of the company. Fries is the president of Claxton Poultry, while Brady is a vice president.

According to a report from the Wall Street Journal, Penn, Austin and Brady entered pleas of not guilty on June 4. Fries has yet to enter a plea, but he has another hearing scheduled within a week.

Penn, the report said, can remain free on personal recognizance and can travel, but the federal court will not allow him to have contact with employees of eight companies that are Pilgrim’s customers and are alleged victims in the case. Conditions set for the other three suspects were not included in the report.

Penn, the former president of Pilgrim’s USA, was selected to succeed Bill Lovette as the president and CEO of Pilgrim’s Pride in March 2019. Penn has been an employee of Pilgrim’s Pride since 2011.

Fries was promoted to president of Claxton Poultry in March 2016, having most recently served as executive vice president of sales and marketing for the company. He is the grandson of Claxton Poultry founder Norman W. Fries.

Following multiple lawsuits alleging many of the largest poultry companies in the United States conspired to raise prices, the DOJ filed a motion in June 2019 to intervene in those cases and investigate the claims of the lawsuits, filed largely on behalf of supermarket chains.

Pilgrim’s Pride is the second largest broiler company in the United States, while Claxton Poultry is the 18th largest poultry company in the country.

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