Tuesday, July 4, 2023

Judge denies companies' bids on price-fixing


 A judge has denied motions by poultry companies to have price-fixing charges dismissed.


The lawsuit is a class action filed by restaurants, supermarkets, distributors and consumers alleging that the companies engaged in tactics such as restricting production and sharing non-public data to manipulate prices starting in 2008. 


In a 90-page decision, U.S. District Judge Thomas Durkin said there is enough evidence for a jury to find it likely that poultry producers conspired to fix prices. 


However, the judge narrowed the case to focus on allegations from the years 2008-2009 and 2011-2012., dismissing claims related to supply cuts in other years and manipulation of the Georgia Dock broiler price index. 


Sherman Act and RICO claims against producers, including Perdue Farms, Fieldale Farms, Foster Farms, Claxton Poultry and Wayne Farms were dismissed. Claims against Agri Stats, a company accused of facilitating monitoring of production and pricing activities, were also dismissed. 


The judge denied motions to dismiss by Tyson Foods, Keystone Foods, Koch Foods, Mountaire Farms, Pilgrim’s Pride, OK Foods, Peco Foods, Raeford Farms, Sanderson Farms and Simmons Foods.


Settlements so far exceed $100 million and include the latest - $8 million paid by Simmons Foods.


In another case filed by direct purchasors, the accused have so far paid about $188.9 million.