JBS’ poultry wing, Pilgrim’s Pride, settles lawsuit for US$100M

USA – Pilgrim’s Pride has agreed to a landmark US$100 million settlement to resolve allegations that it colluded with other poultry companies to underpay agriculture workers. 

This settlement, which represents the highest amount ever in the protein industry, was confirmed in a court document filed with the U.S. District Court for the Eastern District of Oklahoma last week. 

The lawsuit, brought forth by a coalition of broiler farmers, accused Pilgrim’s Pride, a subsidiary of JBS, of engaging in a broad conspiracy to suppress wages for farmers across the country. 

The settlement also highlights claims that this scheme involved coordination with rival firms to limit competition and keep payment rates low.

Despite the settlement, Pilgrim’s Pride did not admit to any wrongdoing. 

The court documents indicate that the alleged conspiracy led to reduced pay for growers due to a lack of competitive pressure for their Broiler-Grow Out Services. 

The resolution of this case follows over seven years of intense legal battles, during which more than 1.7 million court documents were reviewed.

Other major poultry companies had previously reached settlements in the same case, including Tyson Foods with US$21 million, Sanderson Farms with US$17.75 million, Koch Foods with US$15.5 million, and Perdue Farms with US$14.75 million. 

Combined, these settlements amounted to $169 million.

The meat industry has been facing scrutiny over price-fixing and antitrust issues in recent years, with significant financial settlements from major producers. 

In April 2023, Pilgrim’s Pride and Perdue, among others, paid US$35 million to settle allegations of a price-fixing scheme in Washington state. 

However, not all cases have ended in settlements; an Illinois jury recently found Sanderson Farms not guilty of participating in a price inflation scheme.

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