Tyson Foods agrees to settle in poultry collusion case

Tyson Foods, the largest poultry company in the United States, has reached an “agreement in principle” to settle a class-action lawsuit that alleged the company colluded with other major broiler companies in an effort to fix chicken prices and rig bids.

Roy Graber Headshot
(Tyson Foods)
(Tyson Foods)

Tyson Foods, the largest poultry company in the United States, has reached an “agreement in principle” to settle a class-action lawsuit that alleged the company colluded with other major broiler companies in an effort to fix chicken prices and rig bids.

In a statement emailed to WATT Global Media, the company has agreed to settle with entities representing direct purchasers of  broiler chicken products, but it did not disclose the details of the settlement.

“Tyson believes the resolution is in the best interests of the company and its shareholders, and the settlement does not constitute an admission of liability,” the statement read.

The company noted that the settlement is subject to approval by the U.S. District Court for the Northern District of Illinois, and that a joint notice of settlement was filed by the direct purchaser plaintiffs on January 11 as a first step in the court approval process.

So far this week, the two largest broiler companies in the United States announced settlements in the case.

Pilgrim’s Pride, the second largest poultry producer in the United States, stated in a filing with the U.S. Securities and Exchange Commission (SEC) that it has reached a deal to pay $75 million to the plaintiffs in relation to the allegations. Pilgrim’s also stated that its settlement does not mean an admission of any wrongdoing, and that its settlement is subject to federal court approval.

In 2020, 10 poultry industry executives were indicted on federal antitrust charges. At least one of those defendants has had a past affiliation with Tyson Foods. Timothy Mulreinin, who was among those indicted on October 7, is a former director of sales for Tyson Foods, his LinkedIn profile showed.

While an 8-K form related to Pilgrim’s Pride’s settlement can be found on the Pilgrim’s Pride investor relations webpage, no such form was seen on Tyson Foods’ investor relations webpage as of noontime on January 12.

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