Federal Court Narrows Turkey Price-Fixing Lawsuit, Clears Perdue and Foster Farms

According to Reuters, which first reported the ruling, U.S. District Judge Sunil Harjani concluded that the evidence presented by plaintiffs was insufficient to support claims that Perdue Farms and Foster Farms participated in the alleged conspiracy. Reuters reported that the court found the record did not establish that either company joined an unlawful agreement to manipulate the turkey market.

The decision does not end the broader litigation. Reuters reported that claims against Butterball and several other remaining defendants will continue and are expected to proceed toward trial, leaving intact a significant portion of the multidistrict antitrust case pending in the U.S. District Court for the Northern District of Illinois.

The lawsuits accuse major turkey processors of violating U.S. antitrust laws by coordinating production decisions and exchanging competitively sensitive information to keep turkey supplies lower than they otherwise would have been, resulting in higher prices for commercial buyers. The defendants have consistently denied wrongdoing.

The litigation is one of several antitrust cases filed against meat processors over the past decade, reflecting heightened legal and regulatory attention to competition in agricultural and food markets. Plaintiffs have alleged that industry participants used data services, including reports produced by Agri Stats, to share detailed market information that facilitated coordinated behavior. Producers and Agri Stats have disputed those allegations.

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Read more: Importers Sue Shipping Container Makers Over Alleged Price-Fixing Scheme

The turkey litigation has already produced settlements with some companies. Reuters previously reported that Tyson Foods resolved claims brought by direct purchasers in 2021, while Cargill later agreed to a $32.5 million settlement without admitting liability. Cargill also agreed to cooperate with plaintiffs as they continued pursuing claims against remaining defendants.

Judge Harjani has previously certified multiple classes of plaintiffs in the case, allowing direct purchasers, indirect commercial buyers and other groups to pursue antitrust claims collectively. Reuters reported earlier this year that those certified class actions seek more than $1.6 billion in damages related to alleged conduct spanning roughly 2010 through 2016.

The case also forms part of a broader pattern of antitrust litigation involving U.S. protein markets. Courts have heard similar allegations involving chicken, pork and beef producers, while federal and state authorities have examined whether information-sharing practices within the meat industry may have reduced competition.

In a separate but related enforcement effort, the U.S. Department of Justice and six states recently settled their civil antitrust lawsuit against agricultural data company Agri Stats. Regulators alleged that the company’s data reports enabled anticompetitive conduct across the chicken, pork and turkey industries by facilitating exchanges of competitively sensitive information among processors. Under the settlement, Agri Stats agreed to restrictions on the collection and distribution of market data while continuing to deny the government’s allegations.

Reuters also reported in June that Judge Harjani rejected efforts by several turkey producers, including Perdue Farms, to remove litigation funder Burford Capital’s subsidiary from another related turkey price-fixing lawsuit, allowing that separate action to continue.

Perdue Farms and Foster Farms have denied participating in any unlawful price-fixing arrangement. Following the latest ruling, litigation against the remaining defendants—including Butterball and others—will continue as the court prepares the surviving antitrust claims for trial.

Source: Reuters