Settlement reached between Tyson, indirect purchasers

A settlement between Tyson Foods and a group of institutional indirect purchaser plaintiffs (IIPPs) has reportedly been reached, in which Tyson has agreed to pay the IIPPs $1.75 million to settle claims by the plaintiffs that Tyson Conspired with other turkey producers to raise the price of turkey.

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(edwardolive | BigStockPhoto)
(edwardolive | BigStockPhoto)

A settlement between Tyson Foods and a group of institutional indirect purchaser plaintiffs (IIPPs) has reportedly been reached, in which Tyson has agreed to pay the IIPPs $1.75 million to settle claims by the plaintiffs that Tyson Conspired with other turkey producers to raise the price of turkey.

According to a Food Business News report, the IIPPs, Sandee’s Bakery and Gnemi LLC filed notice with the U.S. District Court, alleging the collusion took place. A court document stated that all parties are working to finalize the settlement, and the plaintiffs will ask the court to approve the settlement.

In reaching the settlement, Tyson Foods is not admitting any wrongdoing. The company reportedly has agreed to provide the IIPPs with certain documents and data, including those related to Tyson’s turkey sales, direct communications between competitors related to the turkey industry, and any documents it produces to any other party in connection to the litigation.

In addition to agreeing to a settlement with the IIPS, Tyson Foods previously proposed a settlement in the sum of $4,623,000 with a group of direct purchasers. Other defendants named in that case include Butterball, Cargill, Cooper Farms, Farbest Foods, Hormel Foods, Foster Farms, House of Raeford Farms and Perdue Farms.

Tyson Foods is the fifth largest turkey producer in the United States. In 2000, the company slaughtered 368 pounds of live turkeys, a 2.17% increase when compared to the previous year.

A diversified protein producer, Tyson Foods also ranks as the largest broiler producer in the United States. It is also a leading producer of beef and pork products, as well as plant-based protein products.

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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