WASHINGTON, DC – A multimillion dollar settlement over price-fixing allegations in the meat trade has been reached.
According to Bloomberg News, Pilgrim’s Pride Corp., owned by Brazil’s JBS SA, said it will pay $75 million to settle the class action suit, according to a regulatory filing on Monday. Tyson Foods Inc. said in a separate statement that it had reached an “agreement in principle” without disclosing terms. Neither company admited wrongdoing.
Packers have been under fire, with wholesale buyers including Chick-fil-A and Target Corp. having sued top U.S.corporate chicken growers and processors for fixing meat prices for years. The companies have also faced pressure as the coronavirus spread among its workforce, shutting down several facilities last year.
In October of last year, Pilgrims agreed to pay a $110.5 million fine in a plea deal with the U.S. Department of Justice on the price-fixing allegations, which ensnared two former chief executives. The company said the new settlement will be reflected in its fourth-quarter results.
