A hearing has been scheduled regarding Pilgrim's Pride's proposed settlement in a lawsuit that alleges it conspired with other U.S. poultry producers to suppress payments to contract growers.
According to a press release from settlement administrator Angeion Group, a hearing will be held at 2:30 p.m. January 7 at the United States District Court for the Eastern District of Oklahoma, in Muskogee, Oklahoma.
The hearing will be centered around offers to settle the case filed against Pilgrim’s Pride, which the plaintiffs allege colluded with Tyson Foods, Perdue Farms, Koch Foods and Sanderson Farms between January 27, 2013, and December 31, 2019, to artificially reduce the amounts the plaintiff companies paid to broiler chicken growers.
All five plaintiff companies offered to settle, but it was Pilgrim’s Pride that agreed to pay the highest amount. In its settlement offering, Pilgrim’s agreed to pay $100 million, with paperwork being filed in the Muskogee federal court on August 16.
Other settlement amounts include:
- Tyson Foods: $21 million
- Perdue Farms: $14.75 million
- Koch Foods: $15.5 million
- Sanderson Farms: $17.75 million.
While none of these companies have been identified as defendants in the case, the plaintiffs allege that they were co-conspirators: Foster Farms, Mountaire Farms, Wayne Farms, George’s, Peco Foods, House of Raeford Farms, Simmons Foods, Keystone Foods, Fieldale Farms, O.K. Industries, Case Foods, Marshall Durbin Companies, Amick Farms, Mar-Jac Poultry, Harrison Poultry, Claxton Poultry Farms and Agri Stats.
Sanderson Farms has since merged with Wayne Farms to form Wayne-Sanderson Farms, and Keystone Foods has since been acquired by Tyson Foods. Marshall Durbin was acquired by Mar-Jac in 2014.
None of the plaintiff companies or those accused as co-conspirators have admitted to any wrongdoing. The plaintiffs, instead, decided to settle and put the distractions of the lawsuit behind them.
The Angeion Group press release indicated that the location of the hearing could change.
