Washington State Attorney General Bob Ferguson announced a significant step in an antitrust lawsuit concerning chicken price-fixing. The lawsuit has culminated in a settlement pool of $40.6 million, with an additional $460,000 recently added. This sum is intended to compensate Washington residents who were affected by the price manipulation.
Ferguson expressed strong sentiments about the lawsuit’s implications. He stated that corporate greed and illegal price-fixing had led Washingtonians to unknowingly pay more for chicken. The attorney general emphasized the importance of holding accountable those responsible and ensuring that affected families receive compensation. Interestingly, this isn’t the only instance where Washington has taken legal action against price-fixing. In 2020, the state also targeted tuna producers, resulting in a $5.1 million settlement.
However, the distribution of the settlement money has sparked controversy. Checks are being sent exclusively to Washington residents whose income falls below 175% of the federal poverty level. This approach has drawn criticism from conservative groups and the Washington State Republican Party. Jim Walsh, the chair of the state’s Republican Party, voiced concerns about the distribution, alleging that checks had been sent to deceased residents. Additionally, given that Ferguson is also running for governor, questions have been raised about the timing and motivations behind the distribution.
In response to these criticisms, Ferguson clarified that the checks were not personally signed by him. The distribution system relied on data provided by Experian. He defended the decision, asserting that the funds were targeted to assist those who were least capable of bearing the brunt of the price-fixing schemes.
Approximately 402,200 Washington households qualify for the settlement checks, which represents about 15% of the state’s population. The amount recipients receive varies: individuals get $50, while multi-person households are eligible for $120.
The entire episode underscores the intricacies and controversies associated with corporate malpractices, legal settlements, and the subsequent distribution of compensation.
