Pilgrim’s Pride to Pay $75 Million to Chicken Buyers in Antitrust Case
(Bloomberg) -- America’s top two chicken producers have reached agreements with buyers to settle complaints over price-fixing allegations.
Pilgrim’s Pride Corp., owned by Brazil’s JBS SA, said it will pay $75 million to settle the class action suit, according to a regulatory filing on Monday. Tyson Foods Inc. said in a separate statement that it had reached an “agreement in principle” without disclosing terms. Neither company admited wrongdoing.
American meat companies have been under fire, with poultry buyers including Chick-fil-A and Target Corp. having sued top U.S. chicken producers for fixing meat prices for years. The companies have also faced pressure as the coronavirus spread among its workforce, shutting down several facilities last year.
Pilgrim’s in October agreed to pay a $110.5 million fine in a plea deal with the U.S. Department of Justice on the price-fixing allegations, which ensnared two former chief executives. The company said the new settlement will be reflected in its fourth-quarter results.
Pilgrim’s and Tyson both said they believes a settlement is in the best interest of the company and its shareholders.
©2021 Bloomberg L.P.