Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Tyson Foods reaches more settlements in chicken price-fixing litigation

Published 01/19/2021, 03:50 PM
Updated 01/19/2021, 08:05 PM
© Reuters. FILE PHOTO: Chicken is pictured in New York

(Reuters) - Tyson Foods Inc (NYSE:TSN) agreed to settle price-fixing litigation with two more groups of plaintiffs accusing it of illegally conspiring to inflate prices in the $65 billion chicken industry.

The settlements with so-called "end-user" consumers and with more than 30 commercial purchasers were disclosed in filings on Tuesday in federal court in Chicago.

Eight days ago, Tyson agreed to settle related antitrust claims by purchasers who bought chickens directly from the Springdale, Arkansas-based company.

Tyson has also faced price-fixing claims by large restaurant and supermarket operators such as Chick-fil-A, Kroger (NYSE:KR) Co and Walmart (NYSE:WMT) Inc.

Terms of the settlements were not disclosed, and court approvals are required. Tyson had no immediate comment.

Pilgrim's Pride (NASDAQ:PPC) Corp, owned mainly by Brazil's JBS SA (OTC:JBSAY), agreed on Jan. 11 to pay $75 million to settle claims by direct purchasers of chickens.

Restaurants, supermarkets, food distributors and consumers accused chicken producers of having conspired since 2008 to inflate chicken prices, through tactics such as restricting production and sharing nonpublic data about supply and demand.

Perdue Farms Inc and Sanderson Farms (NASDAQ:SAFM) Inc are among the other defendants in the litigation, which began in 2016. A few smaller producers have settled related claims.

The U.S. Department of Justice last year filed criminal price-fixing and bid-rigging charges in Denver against 10 poultry industry executives. All have pleaded not guilty.

© Reuters. FILE PHOTO: Chicken is pictured in New York

The case is In re Broiler Chicken Antitrust Litigation, U.S. District Court, Northern District of Illinois, No. 16-08637.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.