Class action suit accuses chicken industry of price fixing
Story Date: 9/19/2016

 

Source: MEATINGPLACE, 9/16/16

 A class action lawsuit filed in U.S. district court in northern Illinois accuses the largest U.S. chicken processors of killing chickens and destroying eggs to limit production in a scheme to boost prices.


The suit, filed by the law firm Hagens Berman, names Tyson Foods, Perdue Farms, Pilgrim's Pride, Sanderson Farms, Simmons Foods, Koch Meats, JCG Foods, Koch Meats, Wayne Farms, Mountaire Farms, Peco Foods, Foster Farms, House of Raeford Farms, Fieldale Farms, George's Farms and O.K. Foods.


The complaint alleges that Tyson and Pilgrim’s led a “call to arms” starting in 2008 to cut production, persuading other producers to follow.


Producers then destroyed broiler hens responsible for supplying eggs to their breeder flocks and also shipped breeder flocks to Mexico, according to the suit, which accuses producers of continuing to make coordinated cuts in production in 2011 and 2012. “This destruction of the broiler breeder flock was unparalleled,” the lawsuit states.


"Pilgrim’s is aware of the complaint and strongly denies any allegations of market manipulation. The company welcomes the opportunity to defend itself against these claims through the legal process," Pilgrim's spokesman Cameron Bruett said in an email to Meatingplace.


Spokesmen for Tyson and Perdue were not immediately available to comment on the lawsuit.
The complaint follows a lawsuit filed earlier this month by a foodservice distribution company that accuses 14 poultry processors of illegally manipulating supplies to maintain high prices in 2008.

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