Perdue Farms, Foster Farms dismissed from US turkey price fixing lawsuit

USA – A United States federal judge has dismissed antitrust claims against Perdue Farms and Foster Farms in a long-running lawsuit accusing leading turkey producers of coordinating production cuts to increase prices, while allowing the case against three other companies to proceed to trial.

The lawsuit, first filed in 2019, alleges that several of the country’s largest turkey processors worked together to reduce production during the 2008 to 2009 and 2012 to 2013 periods, with the aim of raising turkey prices between 2010 and 2016.

Plaintiffs argued that internal email communications, participation in National Turkey Federation committees responsible for a 2008 industry outlook report and market data supplied by benchmarking company Agri Stats pointed to an agreement among producers to limit supply.

However, United States District Judge Sunil R. Harjani found that the evidence presented against Perdue Farms and Foster Farms did not establish that the companies had participated in any unlawful coordination, leading to their dismissal from the case.

The court nevertheless ruled that claims against Butterball, Jennie O Turkey Store and Prestage Farms contain enough evidence to be considered by a jury, although Harjani wrote that the case against the remaining defendants is “far from overwhelming.”

The judge also stated that the three companies will have the opportunity during trial to present evidence and testimony disputing the allegations and arguing that no illegal agreement existed.

Trial set for October

Several other companies previously named in the lawsuit have already agreed to settle the claims, although those agreements do not constitute admissions of liability or wrongdoing.

The companies that have reached settlements include Cargill, Cooper Farms, Farbest Foods, House of Raeford Farms, Tyson Foods and Agri Stats.

In a separate ruling, Harjani dismissed all claims alleging that Agri Stats facilitated unlawful exchanges of competitive information through its industry reports, finding that the reports were compiled using aggregated and anonymised data and therefore did not violate antitrust standards under the rule of reason.

The judge also rejected the plaintiffs’ argument that Agri Stats acted as the central organiser of a broader conspiracy linking multiple turkey processors through a so-called hub and spoke arrangement.

With the case narrowed to three remaining defendants, the court has scheduled the trial to begin on October 8, when Butterball, Jennie O Turkey Store and Prestage Farms are expected to defend themselves against the remaining allegations.

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