A federal jury in Illinois ruled in favor of Sanderson Farms, determining that the company did not participate in any conspiracy to reduce the supply and drive up the price of chicken.
The ruling was made on October 25 in an antitrust case trial that began more than one month ago. In the case, a class of direct purchasers accused Sanderson Farms of conspiring with Wayne Farms, Perdue Farms, Fieldale Farms, Case Farms, Claxton Poultry, Foster Farms, Tyson Foods, Pilgrim’s Pride, Harrison Poultry, Koch Foods, Mountaire Farms, Keystone Foods, Peco Foods, O.K. Foods, House of Raeford Farms, Simmons Foods and Agri Stats.
The plaintiffs alleged that these companies participated in a supply reduction conspiracy between 2008 and 2012 – prior to when Sanderson Farms and Wayne Farms merged to form one company -- Wayne-Sanderson Farms.
However, the evidence presented at the trial failed to convince the jury that such a conspiracy ever existed.
“We are pleased that, after a full and fair trial, the jury has rendered a unanimous verdict in favor of Sanderson Farms on all counts. The evidence presented over the last six weeks is clear: Sanderson Farms and the broiler industry did not conspire to produce less chicken,” said Jeremy Kilburn, chief legal and compliance officer for Wayne-Sanderson Farms.
Kilburn further stated that Sanderson Farms’ business practices were contrary to the plaintiffs’ allegations as the company actually grew, and followed a pattern of increased production in a lawful manner.
“Sanderson Farms built more plants than the rest of the industry combined and grew more than any of its competitors before, during and after the period of plaintiffs’ alleged supply reduction conspiracy. In a time of industry crisis, during which several major chicken producers went bankrupt, Sanderson Farms made independent business decisions to reduce its losses—as any rational business would. Today’s verdict vindicates Sanderson Farms and shows that the Plaintiffs’ case ignored fundamental truths about Sanderson Farms and the nature of the chicken industry,” he said.
Wayne Farms has also been cleared of any wrongdoing, as a federal judge in June issued a summary judgment that insufficient evidence had been presented that Wayne Farms, Perdue Farms, Fieldale Farms, Case Farms, Claxton Poultry, Foster Farms or Agri Stats took part in any conspiracy.
Kilburn said Wayne-Sanderson Farms is pleased to have been able to make its case in court, and he offered thanks on behalf of the company to the jury for their “time and thoughtfulness in evaluating this case.”
Wayne-Sanderson Farms is the third largest poultry producer in the United States, employing more than 26,000 people and operating 23 fresh and further-processing facilities in Alabama, Arkansas, Georgia, Louisiana, Mississippi, North Carolina and Texas.
