A federal judge has denied an effort by major United States turkey producers to block the deal Sysco made with Carina Ventures LLC, a subsidiary of Burford Capital.
U.S. District Judge Sunil Harjani ruled Monday that Carina can pursue antitrust claims against Tyson Foods, Perdue Farms, Hormel Foods, Butterball, Cargill and others, even though Carina never purchased turkey products itself.
The defendants argued that Carina was created solely to profit from litigation and should not be allowed to sue. Harjani rejected that view, writing that “no law, rule or federal precedent” bars such an arrangement and that it is Congress, not the courts, that must decide the limits of litigation funding.
The case stems from allegations that turkey processors conspired to restrict supply and inflate prices. While Sysco was never a plaintiff in the turkey case, it assigned its claims to Carina following a funding dispute with Burford, which has invested more than $140 million to back Sysco’s antitrust litigation across the meat industry.
Harjani acknowledged broader concerns about third-party funders pursuing legal claims but found no evidence of misconduct by Burford or Carina.
I used to think Canada's agriculture industry could benefit from price-fixing rules similar to the United States, but I'm no longer quite so sure.
On the other hand, some Canadian giants certainly abuse their power.
