In a significant development, a class of direct purchasers has agreed to a $75 million settlement with two poultry companies in a high-profile price-fixing case. The settlements, reached with House of Raeford Farms ($27.5 million) and Koch Foods ($47.5 million), are currently pending preliminary approval from Illinois federal judge Thomas Durkin.
This latest agreement adds to the ongoing settlements, bringing the total to $284 million with various poultry producers implicated in the case. The lawsuit alleges a conspiracy among these companies to fix chicken prices, impacting direct purchasers. While House of Raeford Farms and Koch Foods maintain their innocence, they emphasize that the settlements are a strategic move to avoid the costs associated with prolonged litigation and potential adverse judgments at trial.
The purchaser class had previously secured substantial settlements from other key players in the industry, including $75 million from Pilgrim’s Pride and $79.3 million from Tyson Foods. In September, Judge Durkin granted preliminary approval for settlements of $15.9 million from Mountaire Farms and $4.9 million from O.K. Foods, further shaping the landscape of this complex legal battle.
As the legal proceedings unfold, the settlements reflect an ongoing effort to address allegations of anticompetitive behavior in the poultry industry, with the affected purchasers moving closer to resolution in their quest for compensation.
