People who bought chicken products in the United States over the past decade could be eligible to receive payments as part of a $ 181 million collective agreement.
Prosecutors in a class action lawsuit called Broiler Chicken Antitrust Litigation allege that several corporations, including Fieldale, Mar-Jac, Pilgrim’s and Tyson, “conspired to restrict supply and fix, raise and stabilize the price of chicken,” which is a violation of federal and state consumer and antitrust laws. Defendants have denied the allegations.
The law firm representing the plaintiffs in the case issued a legal notice on Friday authorized by the U.S. District Court for the Northern District of Illinois. It is stated that anyone who has purchased chicken in the country from January 1, 2009 to December 31, 2020, in several U.S. states, may be eligible to receive money, pending final court approval. .
A hearing is scheduled for 9 a.m. on December 20, 2021 to consider final approval of the settlement agreements.
Eligible ones include any person or entity who has purchased fresh or frozen raw chicken, whole minced poultry purchased within a package, or parts of “white meat,” including breasts and wings. Chicken marketed as halal, kosher, free or organic is excluded from this settlement.
Eligible states include California, District of Columbia, Florida, Hawaii, Illinois, Iowa, Kansas, Maine, Massachusetts, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Oregon, Rhode Island (after July 15, 2013), South Carolina, South Dakota, Tennessee, Utah and Wisconsin.
FILE: A whole raw chicken is shown in an undated file image taken in Washington, DC (Photo by Deb Lindsey for the Washington Post via Getty Images).
Fieldale Farms Corporation, George’s, Mar-Jac Poultry, Peco Foods, Pilgrim’s Pride and Tyson Foods were named defendants in the settlement. All companies have denied any offense.
Full payment is still being determined. Consumers are encouraged to check their eligibility and file a claim online by December 31, 2022, at www.overchargedforchicken.com or by calling 1-877-888-5428.
Last week, Tyson Foods and Perdue Farms reached a nearly $ 35 million settlement in a lawsuit that also accused them and several other companies of conspiring to dominate the industry and set prices paid to farmers raising chickens. according to the Associated Press.
Poultry companies agreed to the settlements without admitting any crime while the lawsuit remains pending from several other industry giants, including Pilgrim’s Pride, Koch Foods and Sanderson Farms. The lawsuit, filed by Alabama farmers in Oklahoma federal court, alleges that the system of contract producers created by the meat companies pushed farmers to build and maintain chicken barns that met the company’s standards.
They also said companies were collaborating to set farmers ’compensation at low levels to increase companies’ profits, making it difficult for farmers ’financial survival. In general, chicken producers enter into long-term contracts with meat companies, according to farmers, which block them in agreements that set their compensation at unprofitable levels.
Farmers who sued reported earning $ 12,000 to $ 40,000 a year while working 12 to 16 hours a year, while major meat companies like Tyson and Pilgrim’s reported annual profits in excess of $ 1 billion. dollars.
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Previously, major meat companies have defended the system as fair; asks farmers to provide barns and labor to raise chickens, while companies provide chicks, feed and experience. Industry officials have said the contract system has worked for six decades because it benefits businesses and farmers.
Perdue Farms spokeswoman Diana Souder said the company, which will pay $ 14.75 million, values the relationship it maintains with its farmers and Purdue pays them based on their performance.
“As an essential vital element of our business, we value the excellent relationships based on the trust we have with our farmers and we are committed to providing them with fair and competitive contracts that benefit them and, therefore, our animals, companies , customers and consumers. ”Souder said
Tyson, who agreed to pay $ 21 million for the liquidation, decided it was in the company’s best interest to eliminate the uncertainty, risk, expense and distraction of an extended litigation, spokesman Derek Burleson said.
The Biden administration has said it plans to enact new rules that encourage competition in the agricultural sector and protect farmers from the country’s largest meat processors, including making it easier for farmers to sue companies with which they contract for internships. unjust, discriminatory or misleading.
This story was reported from Cincinnati. Associated Press contributed.