Sysco Corp. and US Foods Inc. have filed separate antitrust lawsuits in U.S. District Court for northern Illinois accusing Tyson Foods, Pilgrim’s Pride, Sanderson Farms and a number of other processing companies of conspiring to curtail the supply of chicken and artificially inflate prices, according to the complaint.
The distribution companies, in the lawsuits, accuse the processors of reaching illegal agreements and restraining trade from 2008 through 2016, by reducing the supply of broiler chickens in the market and by price index manipulation for wholesale chickens. The lawsuits also accuse Agri Stats Inc. of participating in the alleged conspiracy through its price reporting.
The suits follows a 2016 class action lawsuit accusing the nation’s top poultry producers of price-fixing since 2008 in violation of the antitrust-focused Sherman Act.
Earlier this month, Winn-Dixie Stores filed suit against the same poultry companies making similar allegations.
“Follow-on complaints like these are common in antitrust litigation,” Tyson spokesman Gary Mickelson told Meatingplace in an email. “Such complaints do not change our position that the claims are unfounded. We will continue to vigorously defend our company.”
Pilgrim’s spokesman Cameron Bruett said in an email: “Pilgrim’s believes the case is completely without merit. We look forward to defending our interests through the appropriate legal process.”
Sanderson Farms Chief Financial Officer Mike Cockrell also said his company will vigorously defend itself against the lawsuits.
Sysco and US Foods are demanding jury trials and intend to seek treble damages from the defendants, according to the complaints.
Also named in the suit are: Koch Foods, JCG Foods, House of Raeford Farms, Mar-Jac Poultry, Perdue Farms, Wayne Farms, Fieldale Farms, George’s Farms, Simmons Foods, O.K. Foods, Peco Foods, Harrison Poultry, Foster Farms, Claxton Poultry Farms and Mountaire Farms.