Tyson offers settlement in turkey collusion lawsuit

Tyson Foods reached a $4.62 million settlement with purchasers of turkey products who alleged Tyson was among U.S. turkey companies that conspired to fix the price of turkey.

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kolesnikov, Bigstock
kolesnikov, Bigstock

Tyson Foods reached a $4.62 million settlement with purchasers of turkey products who alleged Tyson was among U.S. turkey companies that conspired to fix the price of turkey.

According to a Talk Business & Politics report, Judge Virginia Kendall approved the settlement offer on May 25, and that the company agreed to place that settlement amount into an escrow account within two weeks, to put an end to the lawsuit. Kendall presides over the U.S. District Court, Northern District of Illinois, Eastern Division.

The plaintiffs allege that Tyson and eight other turkey processors conspired to fix prices between 2010 and 2017. Other companies listed as defendants include Butterball, Cargill, Cooper Farms, Farbest Foods, Hormel Foods, Foster Farms, House of Raeford Farms and Perdue Farms.

A spokesman for Tyson Foods, in an email sent to WATTPoultry.com on May 25, said the company does not wish to comment on the situation at this time.

A court document filed on May 19 stated that the plaintiffs would move for preliminary and final approval of the proposed settlement “in the near future.” That same document listed the defendants as AgriStats Inc. et al. Agri Stats has been consistently listed as a defendant in other lawsuits alleging poultry industry collusion to fix prices.

While lawsuits alleging collusion among the top broiler companies had been filed for several years prior, the first such lawsuit against turkey producers wasn’t filed until late 2019. In that particular lawsuit, turkey buyers Olean Wholesale Grocery Cooperative, and John Gross and Company filed the suit, which listed Tyson, Butterball, Hormel Foods (Jennie-O Turkey Store), Cargill, Farbest Foods, Foster Farms and Kraft Heinz.

Tyson, Foster Farms, Perdue Farms and House of Raeford have also been listed as defendants in similar lawsuits in which broiler companies were accused of fixing prices, while Tyson and Hormel Foods faced similar allegations in lawsuits targeted toward the country’s top pork companies.

In January, Tyson Foods agreed to pay $221.5 million to settle all class claims related to allegations that it conspired with other broiler companies to raise the price of chicken. The company, however, did not admit any guilt but instead opted to settle because it was “in the best interests of the company and its shareholders.”

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