n a significant legal victory, Sanderson Farms, now part of Wayne-Sanderson, successfully defended itself against allegations of conspiring with industry peers to manipulate chicken prices. Following a six-week trial in Chicago, a federal jury dismissed claims from supermarkets, farms, and distributors, asserting that the chicken producer artificially inflated prices by suppressing supply in collaboration with rivals.
The verdict marks a pivotal point in long-standing consumer and commercial chicken price-fixing litigation, where Sanderson Farms, operating independently and later as Wayne-Sanderson, consistently denied involvement in any price-fixing conspiracy. The company argued that its decisions were driven by self-interest and a need to navigate the challenges faced by the industry, including bankruptcies of major chicken producers.
Wayne-Sanderson’s Chief Legal Officer, Jeremy Kilburn, emphasized that the jury’s decision vindicates the company, highlighting that the plaintiffs overlooked fundamental truths about Sanderson Farms and the chicken industry’s nature. Kilburn stated that the company, in times of industry crisis, made independent business decisions to mitigate losses, a move aligned with rational business practices.
Lead trial attorneys for the plaintiffs have not yet responded to the verdict. Sanderson Farms was represented by lawyers from Proskauer Rose. U.S. District Judge Thomas Durkin, who in June allowed the plaintiffs’ claims to proceed to trial, has yet to rule on a separate request to dismiss other cases involving chicken producers.
Notable grocery store chains, including Kroger Co, Publix Super Markets, and Winn-Dixie Stores, were among the 50 individual plaintiffs in the trial, with Sanderson Farms as the sole defendant. The litigation also encompassed a class of farms and businesses, representing over 3,000 entities, alleging overcharges for chicken purchases due to collusion among producers to limit supply.
While the trial was a pivotal moment, it is part of a broader legal landscape where various parties, both direct purchasers and consumer classes, have reached settlements amounting to hundreds of millions of dollars. The case, titled In re: Broiler Chicken Antitrust Litigation, is ongoing in the U.S. District Court for the Northern District of Illinois under case number 1:16-cv-08637.
