Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

26 Mar 2021

The state of Alaska filed a lawsuit a $1.05 billion lawsuit against 21 chicken producers, accusing these companies of price fixing. In its filing, the State of Alaska is asking for $50 million in damage and restitution payments from each defendant.

“A cartel of corporate chicken supplier conglomerates has secretly engaged in a vast, illegal conspiracy to restrain production, manipulate pricing, and rig bids in order to artificially inflate the price of broiler chicken throughout the United States, including in the State of Alaska,” the lawsuit stated.

Alaska takes on 21 companies in a $1 billion price-fixing lawsuit

The poultry industry has been embroiled in cases of anti-trust and price fixing for years, and several of the defendants that were named in this lawsuit have faced these accusations multiple times. Tyson Foods Inc., Pilgrim’s Pride Corp., Claxton Poultry, Fieldale Farms, Foster Farms, Koch Foods, Perdue Farms, Sanderson Farms and Simmons Food are among those named in the lawsuit.

In the filing, the State of Alaska points out that the named corporations controlled 90% of the broiler chicken market in the U.S. and that their collusion created an anti-competitive market where prices were artificially inflated. Additionally, the lawsuit pointed out that this was not the first time that many of these corporations were implicated in such a scheme.

Most recently, Pilgrim’s Pride, which is the second-biggest chicken producer in the U.S. and majority-owned by JBS SA, pleaded guilty in February to federal charges and agreed to pay $107.9 million fine to the U.S. Justice Department. Tyson Foods similarly agreed to pay a $221.5 settlement to the U.S. Securities and Exchange Commission, but the company did not admit any liability.

Pilgrim's Pride, Tyson, Sanderson Farms, Koch Foods and Claxton Poultry were all named collectively in a 2016 federal case accusing the group of artificially raising the benchmark prices on the Georgia Dock price index so that wholesale and retail prices deviated from market value at a magnitude that cost U.S. grocery shoppers billions of dollars.

Nor is Pilgrim’s Pride is not out of hot water yet. The company currently has multiple pending lawsuits filed by supermarket and restaurant chains and has repeatedly been a target of the U.S. Justice Department.
Anti-trust allegations have grown in number in recent years and reached outside of just the chicken industry. JBS, Pilgrim Pride’s parent company, was also under scrutiny for its pork pricing and recently settled the class action lawsuit with a $24.5 million direct payment to consumers.

Read Lawsuit Here

Related tags

Market News

Related news

Chinese food brand wants to give customers ‘the full experience’

Chinese food brand wants to give customers ‘the full experience’

16 Dec 2022

Food brand Xiao Chi Jie is revamping Chinese cuisine for the modern American consumer. The Washington-based company sells regional Chinese specialties like soup dumplings, noodle kits, and barbeque skewers direct-to-consumer in the US.

Read more 
Regulations spur healthy snacking in Europe

Regulations spur healthy snacking in Europe

15 Dec 2022

Healthy snack demand is on an upward trajectory in Europe, fuelled by products attaching health halos to their products, according to latest figures by Euromonitor – but regulations may be the real driver.

Read more 
Could the EU-Mercosur trade deal be revived?

Could the EU-Mercosur trade deal be revived?

14 Dec 2022

The re-election of Luiz Inácio da Silva, or Lula, as president of Brazil has prompted speculation that the free-trade agreement between the EU and South American Mercosur bloc could be revived – but the European farming sector has concerns.

Read more 
Novozymes and Chr. Hansen to merge

Novozymes and Chr. Hansen to merge

13 Dec 2022

Danish enzyme suppliers Novozymes and Chr. Hansen are to merge in a strategic alliance that will "show the world the true power of biosolutions", according to the CEO of the continuing company, Novozymes.

Read more 
Could menopause-supporting products be the next big opportunity?

Could menopause-supporting products be the next big opportunity?

13 Dec 2022

As supplement brands launch products to relieve the symptoms of menopausal women such as nutraceutical gummies, the unmet needs of this group is attracting government attention in the UK.

Read more 
Plant-based fish and seafood launches around the world

Plant-based fish and seafood launches around the world

12 Dec 2022

From pea protein-based prawns to microalgae-based tuna alternatives, plant-based alternatives to fish and seafood are on the rise around the world.

Read more 
Editors’ choice: Our roundup of the most innovative sweets, snacks and bakery products

Editors’ choice: Our roundup of the most innovative sweets, snacks and bakery products

9 Dec 2022

The sweets, snacks, and bakery categories are an exciting area, full of fresh and innovative products which are constantly adding meaningful value to the sector.

Read more 
Functional food in Japan centres on health and proving claims

Functional food in Japan centres on health and proving claims

8 Dec 2022

The latest Japanese functional food and drink trends put health and product efficacy firmly on the production agenda for new releases.

Read more 
Swedish food agency: One in 10 coffee brands contain excess acrylamide

Swedish food agency: One in 10 coffee brands contain excess acrylamide

7 Dec 2022

New findings from the Swedish Food Agency have revealed three of 29 coffee products sampled contained acrylamide above limits, reinforcing the link between levels and degree of roasting.

Read more 
‘Super nut’? Indonesia’s ‘best kept secret’ wins EU novel food approval

‘Super nut’? Indonesia’s ‘best kept secret’ wins EU novel food approval

6 Dec 2022

A previously obscure, nutrient-rich Indonesian nut is set to hit European shelves after winning EU novel foods approval that could also help protect under-threat kenari forests on the archipelago.

Read more