A PYMNTS Company

US: New suit against poultry giants alleges price-fixing conspiracy

By  |  January 16, 2018

The Chicago Tribune reported grocery store chain Winn-Dixie and a sister company have sued Tyson Foods, Perdue Farms and Koch Foods. A federal judge refused to dismiss a similar lawsuit two months ago. Allegations include that the companies destroyed breeder hens and eggs to reduce the chicken supply, bumping up the price of chickens 50% since 2008

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    In the suit filed Friday, January 12, in US District Court in Chicago, Jacksonville, Florida-based Winn-Dixie Stores and Bi-Lo Holdings allege the companies conspired to fix the price of chickens for nearly a decade, in part by “destroying” their own breeder hens and eggs to hamper production, according to a lawsuit. Since 2008, the coordinated production cuts have resulted in a roughly 50 % increase in the price of broiler chickens — the most popular kind of chicken meat in the country, according to the lawsuit.

    The chicken manufacturers named in the suit together control about 90% of the US$30 billion broiler market, according to the lawsuit.

    Tyson spokesman Worth Sparkman called Friday’s case an “add-on lawsuit” and said it doesn’t “change the fact that these claims are unfounded because we’ve not done anything wrong.” He said, “We will defend our company in court.”

    Full Content: Chicago Tribune

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.