Pilgrim’s Pride is once again in the legal spotlight as it seeks to have an investor lawsuit dismissed, following an appeals court’s decision to overturn a previous dismissal by a federal judge. The lawsuit centers around allegations that the poultry processor engaged in price-fixing practices.
The initial complaint against Pilgrim’s Pride was filed by an investor back in 2016, only to be dismissed by Judge R. Brooke Jackson in 2018. However, in 2020, the same investor filed an amended complaint as part of a federal securities-fraud class action lawsuit.
In their recent motion, Pilgrim’s Pride argued that vague and optimistic statements made by companies should not be sufficient grounds for legal action. They pointed to previous dismissals where the court emphasized that misstatements alone do not constitute a deceptive scheme unless accompanied by distinct deceptive actions on the part of the defendants.
Notably, Judge Jackson once again dismissed the case in 2018, but an appeals court overturned this ruling in July.
The investor’s amended complaint echoes the themes of the significant antitrust lawsuits against major protein producers. It alleges that these large companies conspired to artificially manipulate, increase, and sustain high prices on broiler chicken, leading to Pilgrim’s Pride achieving exceptional financial results and profit margins during the Class Period spanning from 2013 to 2016.
The alleged collusion involved tactics such as manipulating the Georgia Dock chicken pricing index and coordinating production cuts to reduce the supply of broilers. Additionally, the lawsuit contends that Pilgrim’s Pride falsely attributed its increased revenues to improved business strategies.
This renewed legal battle places Pilgrim’s Pride in a challenging position as it faces allegations of anticompetitive behavior, highlighting the ongoing scrutiny and legal challenges faced by major players in the poultry industry.
