Pilgrim’s Pride Corporation entered into a plea agreement with the United States Department of Justice Antitrust Division in respect to the federal agency’s investigation into allegations that Pilgrim’s and other top poultry companies conspired to fix prices and rig bids for broiler chicken products.
In the plea agreement, which is subject to the approval of the United States District Court of Colorado, Pilgrim’s and the Antitrust Division agreed to a fine of more than $110.5 million for restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States. The agreement does not recommend a monitor, any restitution or probationary period, and provides that the Antitrust Division will bring no further charges against Pilgrim’s in this matter, provided the company complies with the terms and provisions of the agreement.
Pilgrim’s expects to record the fine as a miscellaneous expense in its financial statements in the third quarter of 2020.
“Pilgrim’s is committed to fair and honest competition in compliance with U.S. antitrust laws,” stated Fabio Sandri, Pilgrim’s CEO. “We are encouraged that today’s agreement concludes the Antitrust Division’s investigation into Pilgrim’s, providing certainty regarding this matter to our team members, suppliers, customers and shareholders.”
The plea deal was made as two former Pilgrim’s Pride CEOs – Bill Lovette and Jayson Penn -- and others involved with the company were indicted on federal antitrust charges.
Penn, the former president of Pilgrim’s USA who was promoted to CEO of Pilgrim’s Pride in March 2019, and Roger Austin, a former vice president of the company, were indicted in June. Sandri replaced Penn as CEO on September 23. Also indicted in June were Mikell Fries and Scott Brady. Fries is president of Claxton Poultry and Brady is a vice president.
Last week, six additional poultry industry executives were indicted on federal antitrust charges, including Lovette, Timothy Mulrenia, William Kantola, Jimmie Little, Gary Roberts and Rickie Blake. Little’s LinkedIn profile lists him as a member of the Pilgrim’s Pride sales team, while Kantola’s profile lists him as senior vice president, Foodservice, of Pilgrim’s Pride.
Little was additionally charged with making false statements and obstruction of justice.
Pilgrim’s Pride is the second largest poultry company in the United States, producing 160.94 million pounds of ready-to-cook chicken on a weekly basis. The company also has operations in Mexico and Europe.
