Butterball Moves to End Turkey Antitrust Litigation With $34M Pact

The proposed settlement was disclosed in a motion filed Friday in federal court in Illinois, according to Law360, which reported the agreement on Aug. 21. The deal would end the turkey purchasers’ claims against Butterball before a scheduled trial.

The litigation, pending in the U.S. District Court for the Northern District of Illinois, dates to 2019 and centers on allegations that turkey suppliers coordinated to restrict supply and raise prices. Purchasers have alleged that producers exchanged competitively sensitive information, including production and pricing data, through industry data provider Agri Stats Inc.

Butterball’s agreement comes as a series of settlements has narrowed the sprawling case. According to Law360, U.S. District Judge Sunil Harjani earlier this month gave preliminary approval to a settlement involving Hormel Foods Corp. and Jennie-O Turkey Store LLC and urged Butterball to reach an agreement rather than incur the substantial costs of preparing for trial.

In late July, Harjani also preliminarily approved an $18.7 million settlement involving House of Raeford Farms Inc. and Prestage Farms Inc., according to Law360. Agri Stats previously reached an agreement with purchasers, while other producers have settled claims during the litigation.

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The Butterball settlement follows a July ruling that left the company facing trial while dismissing claims against Perdue Farms and Foster Farms. Reuters reported at the time that the Chicago federal court allowed portions of the litigation involving Butterball and other defendants to proceed.

Related: Judge Greenlights Cartel Suit Against Tyson, Cargill, Hormel, Butterball

The buyers’ case is part of a broader wave of antitrust litigation targeting U.S. meat and poultry markets. Plaintiffs in those cases have challenged practices including the sharing of confidential industry information and alleged coordination over production, prices and employee compensation.

In the turkey litigation, purchasers have alleged that suppliers used nonpublic information to help coordinate production decisions and support higher prices. Earlier proceedings focused in part on claims that producers engaged in parallel supply reductions, including during 2008-2009 and 2012-2013, according to Bloomberg Law.

The litigation reached a significant procedural milestone in January 2025, when Harjani certified classes of direct and indirect turkey purchasers. The ruling allowed the purchasers to pursue their antitrust allegations collectively against defendants that at the time included Butterball, Cargill Inc. and Hormel.

Butterball’s $34 million agreement, if approved by the court, would further reduce the number of unresolved claims in a case that has stretched for nearly seven years.

Law360 reported that the settlement would bring the purchasers’ long-running dispute with Butterball to an end before trial. The original Law360 report by Hailey Konnath is available at Butterball Signs $34M Price-Fixing Deal With Turkey Buyers.

Source: Law360