A preliminary approval on a lawsuit settlement has been reached by nine poultry processors for $180 million after years of anti-trust claims, including allegations of conspiring to depress worker wages. The class action memorandum was filed in the US District Court of Maryland on Dec. 23, with US District Judge Stephanie Gallagher set to review the document and the nine proposed settlements.
The document outlines the amount each company will pay to settle the matter. The plaintiffs in this case include Allen Harim Foods LLC ($5 million), Amick Farms LLC ($6.25 million), Butterball LLC ($8.5 million), Fieldale Farms Corp. ($5.5 million), Foster Poultry Farms ($13.3 million), Jennie-O Turkey Store Inc. ($3.5 million), Koch Foods Inc. ($18.5 million), OK Foods Inc. ($4.75 million), and a combined $115.5 million from Tyson Foods Inc. and Keystone Foods Inc.
According to the court filing, the approval “secured extensive cooperation obligations that Plaintiffs expect will materially strengthen their claims against Agri Stats.” The plaintiffs had previously alleged that the companies conspired by exchanging compensation data provided by Agri Stats Inc. and others. They also alleged that company executives held “off the books” meetings, and managers exchanged future compensation plans across plants via phone calls and electronic surveys.
All of the companies involved in the settlement have denied any wrongdoing. Other major poultry brands like Perdue and Sanderson Farms settled similar claims last year, with Mountaire Farms and Case Farms also coming to a settlement agreement in April.
This settlement marks a significant step towards resolving the long-standing anti-trust claims against these poultry processors. The $180 million settlement demonstrates the seriousness of the allegations and the commitment of the companies to address the issues raised by the plaintiffs.
Moving forward, it will be important for the companies involved to uphold their cooperation obligations and work towards ensuring fair compensation practices for their workers. By settling these claims, the companies are taking a proactive step towards rebuilding trust with their employees and the public.
The settlement also serves as a reminder of the importance of fair competition and transparency in the poultry industry. It is crucial for companies to adhere to anti-trust laws and ethical business practices to protect the rights of workers and consumers.
In conclusion, the preliminary approval of the $180 million lawsuit settlement is a significant development in the ongoing anti-trust claims against nine poultry processors. This settlement highlights the importance of addressing allegations of wage suppression and collusion in the industry, and underscores the need for companies to uphold fair and ethical business practices.