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Pilgrim’s Pride Finalizes $100 Million Settlement with Farmers in Wage Suppression Case

By  |  January 8, 2025

Pilgrim’s Pride Corp. has secured final approval for a $100 million settlement to resolve a long-standing class action lawsuit brought by chicken farmers, who accused the poultry giant of suppressing wages. The resolution brings an end to nearly a decade of litigation for this company over alleged antitrust violations in the poultry industry.

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    The settlement was approved by Judge Robert J. Shelby of the US District Court for the Eastern District of Oklahoma, who emphasized the fairness of the process. According to Bloomberg, Judge Shelby noted in his order that the agreement was reached through “vigorous arm’s-length negotiations” conducted in good faith by experienced legal counsel specializing in antitrust litigation.

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    The lawsuit, filed by farmers who supply chicken to large poultry companies, alleged that Pilgrim’s Pride and other industry players colluded to keep grower payments artificially low. The farmers, who are responsible for raising chickens under strict contracts with poultry processors, argued that the companies’ practices restricted their ability to earn fair compensation for their work.

    Per Bloomberg, the settlement also includes a significant payout for the legal team representing the farmers. Judge Shelby approved an award of $33.3 million in attorneys’ fees, which represents one-third of the total settlement fund. The judge noted that class counsel demonstrated extensive experience in handling complex antitrust class actions, which contributed to securing a favorable outcome for the plaintiffs.

    The case is part of a broader series of legal challenges against major poultry companies, with farmers and government agencies alleging unfair practices and price-fixing in the industry. Pilgrim’s Pride, one of the largest poultry processors in the United States, had previously reached agreements with the US Department of Justice in related antitrust matters.

    While the settlement marks a victory for the farmers involved in the case, it also highlights ongoing scrutiny of the poultry sector’s business practices. According to Bloomberg, other major poultry firms continue to face legal and regulatory challenges stemming from similar claims of anticompetitive behavior.

    Source: Bloomberg