9 Poultry Companies to Settle $180M Lawsuit by Workers

HIGHLIGHTS:

• 9 poultry firms settled a total of $180 million to resolve a lawsuit filed by its workers
• The employees alleged that the companies colluded to suppress and fix wages in the poultry industry
• The companies denied any wrongdoing but settled the total amount to avoid any uncertainty in litigation

Nine poultry companies have agreed to settle $180 million to resolve a lawsuit filed by workers who accused them of conspiracy in suppressing and fixing wages in the poultry industry.

In a filing on Monday, lawyers for the plaintiffs asked US District Judge Stephanie Gallagher to grant preliminary approval for the new settlements. The companies named in the case included Allen Harim Foods LLC, Amick Farms LLC, Butterball LLC, Fieldale Farms Corporation, Foster Poultry Farms, Jennie-O-Turkey Store Inc., Koch Foods Inc., OK Foods Inc., Tyson Foods Inc., and Keystone Foods LLC.

Violations of antitrust laws

The lawsuit, originally filed in 2019, accused the nine firms and two consulting firms of violating US antitrust laws by sharing wage and benefit information and conspiring to lower compensation for poultry workers over nearly two decades.

Specifically, the plaintiffs claimed that the companies fixed hourly wages and benefits at various poultry industry workplaces, which is a violation of the Sherman Act, which prohibits anti-competitive practices such as wage-fixing.

Tyson, Koch, Foster, and Butterball have denied any wrongdoing but said that settling the case was preferable to prevent any uncertainty, cost, and burden of continued litigation.

As part of the settlement, Tyson and its subsidiary, Keystone Foods, have agreed to pay $115.5 million, Koch Foods will contribute $18.5 million, Foster Poultry Farms will pay $13.3 million, and Butterball will pay $8.5 million.

Plaintiffs’ attorneys called the settlements “historic,” noting that the total recovery is the second-largest in a labor-focused antitrust class action in US history.

The companies involved in the settlements are also expected to cooperate with the plaintiffs in their ongoing pursuit of antitrust claims against the final defendant in the case: Agri Stats, an Indiana-based consulting firm.

Court filings indicated that the settlement would allow plaintiffs to access critical evidence, including documents, data, and testimony, that could further their case against Agri Stats.

In addition to the settlements, previous agreements have been reached with other companies, including Pilgrim’s Pride ($29 million), Simmons Foods ($12 million), George’s ($5.8 million), Peco Foods ($3 million), Cargill Meat Solutions ($15 million), Sanderson Farms ($38.3 million), Wayne Farms ($31.5 million), Perdue Farms ($60.65 million), Case ($8.5 million), and Mountaire ($13.5 million).