Tyson to pay $221.5 million to settle price fixing claims
The largest U.S. poultry producer, Tyson Foods, said on Wednesday it would pay $221.5 million to settle antitrust litigation that accuses it of price fixing in the sale of broiler chicken meat. The agreement needs approval by a federal judge, Tyson said in a filing with the Securities and Exchange Commission.
If the settlement goes forward, it would the largest yet in a series of lawsuits that accuse a number of poultry processors of anticompetitive behavior. Pilgrim’s Pride, the second-largest poultry processor, said on January 11 that it would pay $75 million to settle antitrust claims by direct purchasers. The Tyson Foods settlement would resolve claims by direct purchasers, end users, and indirect commercial and institutional users.
“Under the terms of the settlements, the company has agreed to pay the classes an aggregate amount of $221.5 million, which will be reflected in the company’s first-quarter 2021 financial statements,” said Tyson Foods in the 8-K filing. The company said it did not admit liability as part of the settlements. The settlement does not affect lawsuits by plaintiffs that decided not to be part of the class action lawsuit.