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Tyson Foods Settlement For $200 Million - Antitrust Chicken Lawsuit Filed By Chicken Farmers Ends

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Tyson Foods Broiler Settlement For $200 Million – Antitrust Chicken Lawsuit Filed By Chicken Farmers Ends…

Temporary Settlement Reached Between Tyson and Chicken Farmers in Broiler Antitrust Lawsuit

A provisional settlement agreement of $200 Million was reached in the antitrust lawsuit filed against Tyson Foods Inc. by chicken farmers. According to the lawsuit, Tyson Foods had a role in driving down the salary of chicken farmers until they became forever indebted modern-day sharecroppers.

Tyson Foods Inc. and Other Poultry Farms Reached $93.5 Million Settlement with Indirect Purchasers

A federal judge has granted preliminary approval to three class action settlements between commercial and institutional indirect purchasers and three poultry producers totaling $93.5 million.

Tyson Foods Inc., Pilgrim’s Pride Corp., and Mar-Jac Poultry Inc. had reached separate multidistrict litigation settlements with indirect purchasers.

Tyson will pay $42.5 million to indirect purchasers, Pilgrim’s will pay $44 million to indirect purchasers, and Mar-Jac — which reached an $8 million settlement with direct purchasers — will pay about $6 million to indirect purchasers.

The settlements come in the midst of ongoing multidistrict litigation.

Details of the Settlement

In line with the litigation proceedings where allegations point to Tyson Foods planning with its competitor companies to make sure the price of chicken is low. 

The company will also face other businesses in the supply chain, and all claimed that Tyson, as well as Pilgrim’s Pride, Perdue, and other poultry producing companies, were in a price-gouging scheme to drive down the price of chicken.

But according to Bloomberg Law, it’s not just the poultry producers but also big beef, egg, and fish producing companies that were hit by antitrust lawsuits.

The Tyson Foods Broiler Settlement agreement came out to $200 million, and there were some more paid by other companies.

According to the lawsuit, Tyson Foods and other chicken-producing companies’ actions directly impacted chicken farmers’ salaries and plunged them into debt.

Details of the Lawsuit

Around September 2016, a new lawsuit was filed against many chicken producers, alleging that they jacked up the price of chicken too high.

The four plaintiffs linked to the lawsuit each came from different states and claimed that they bought chicken indirectly from the defendants from each of their states. They also allege that the poultry companies have been manipulating the price of chicken for a long time by hiking up their price. They do this by holding back production, which clearly violates federal and state antitrust laws.

The lawsuit says that broilers make up for about 98% of the chicken sold in the country, and the defendants in the case are said to dominate 90% of the market for broilers.

In 2007, Pilgrim’s Pride and Tyson Foods Inc. allegedly tried to push the price of poultry across the industry by bringing down their production numbers. Although it failed as competitors jacked up their own during this time.

Pilgrim’s and Tyson tried once again by getting other companies’ cooperation in the industry and succeeded. They cut down on their production by getting rid of breeder hens and committed to a production cut for about 18 months.

Further allegations also point to two more instances in 2011 and 2012 that happened. They also cut down on the US supply by getting rid of eggs, keeping them afloat thanks to each other’s supply to meet the demand on their end. They also sent off excess broilers to Mexico, according to the lawsuit.

Another antitrust lawsuit was filed by Maplevale Farms Inc., where they claim they paid a lot of money for broilers because of anticompetitive actions within the industry.

About Tyson Foods, Inc.

Their headquarters is located in Springdale, Arkansas, and they work in the food industry. Their focus is protein-rich foods such as beef, pork, and chicken. 

Editor’s Note On Tyson Foods Antitrust Settlement 2021:

This piece is written about the Tyson Foods Chicken Antitrust class action. If you are an eligible class members and need legal help, then do feel free to reach out to us!

Case Name: Broiler Chicken Grower Antitrust Litigation, Case No. 20-md-2977, 12/17/2020

Product/service: Chicken Prices Across The Country

Allegations: Tyson Foods and many other chicken producers allegedly jacked up the price of chicken to control the market.

If you believe that what is alleged in the Tyson Chicken price-fixing class action lawsuit has affected you, please reach out to us.

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