February 24, 2021 – Tyson to Settle Broiler Chicken Price-Fixing Litigation for $221.5 Million
According to a recent U.S. Securities and Exchange Commission filing, Tyson Foods will settle all class claims it faces over alleged price fixing in the broiler chicken industry for $221.5 million.
ClassAction.org’s brief write-up on the settlement can be found here.
A proposed class action filed on behalf of Tyson Foods shareholders alleges the company violated federal securities laws by systematically colluding with “several of its industry peers” to fix prices in the broiler chicken market. The lawsuit, filed in Ohio district court, claims Tyson Foods’ allegedly fraudulent scheme first came to light after an antitrust suit was filed against the company back in September. That lawsuit argued the defendant and several food industry heavyweight collaborators “conspired since 2008 to manipulate the prices of broiler chickens—chickens raised specifically for meat production—by coordinating and limiting production and exchanging detailed information about prices, capacity, and sales volume” in violation of the Sherman Antitrust Act. The complaint then notes that eight more proposed class actions were heaved at Tyson Foods and their alleged co-conspirators in the span of a month.
On October 7, 2016, Tyson’s stock was downgraded from “hold” to “sell” – and with it came the fall of the company’s stock prices – all reportedly in relation to the aforementioned antitrust allegations.