Cargill Settles Turkey Price-Fixing Lawsuit for $32.5 Million

Cargill has agreed to pay $32.5 million to resolve allegations of price-fixing in the turkey industry, according to a statement. The settlement, part of a class action lawsuit filed by direct purchasers, accuses the company of colluding with others to artificially inflate turkey prices.

Documents submitted to the United States District Court for the Northern District of Illinois reveal that Cargill will deposit the settlement amount into an escrow account for the benefit of the settlement class. However, the agreement awaits final court approval.

This development marks Cargill as the second defendant to settle in the lawsuit, which dates back to 2019. Tyson Foods, another prominent player in the turkey market, previously settled for $4.625 million, per a statement.

Cargill, ranked as the third-largest turkey producer in the United States, processes over 793 million pounds of live turkeys annually, according to the WATTPoultry.com Top Poultry Companies Database. The company’s turkey products are sold under brands such as Honeysuckle White, Shady Brook Farms, Honest Turkey, Charter Reserve, and Castlewood Reserve.

Read more: Massachusetts AG Sues Insulin Makers and PBMs Over Alleged Price-Fixing Scheme

Despite the settlement, Cargill maintains its innocence. The company’s attorneys stated the decision was made to avoid the uncertainty and potential risks associated with prolonged litigation.

The lawsuit also names several other industry giants as defendants, including Agri Stats, Butterball, Foster Farms, Hormel Foods (owner of Jennie-O Turkey Store), Perdue Farms, and Kraft Heinz. Hagens Berman Sobol Shapiro LLP, representing the plaintiffs, continues to pursue claims against these companies.

Source: Wattag Net