Pilgrim’s Pride pays $108M in price-fixing scandal

The settlement entered with Pilgrim’s—which is majority owned by Brazilian meat producer JBS—is the result of an ongoing federal antitrust investigation into price-fixing, bid rigging, and other anticompetitive conduct in the broiler chicken industry.

Pilgrim’s participation in price-fixing took place from as early as 2012 through at least 2017 and affected at least $361 million in the company’s sales of broiler chicken products, according to the plea agreement. Some of the largest customers of Pilgrim’s include wholesaler Costco and fast-food chain Kentucky Fried Chicken.

In addition to the criminal fine, Pilgrim’s on Jan. 11 announced it reached a $75 million related settlement in a class-action lawsuit with its direct purchasers, including restaurant chains, supermarket operators, and food distributors. In a statement, Pilgrim’s said it “does not admit any liability for the claims” but said “it believes a settlement was in the best interests of the company and its shareholders.”

A week later, Tyson Foods announced it agreed to a tentative $221.5 million settlement with its direct purchasers. The settlement is subject to approval by the U.S. District Court for the Northern District of Illinois; if approved, it would be the largest settlement surrounding the price-fixing and bid-rigging conspiracy.

To date, the Department of Justice has indicted 10 executives in the industry for their role in the conspiracy, including Jayson Penn, Pilgrim’s former chief executive; Roger Austin, its former vice president; and William Lovette, who preceded Penn as CEO. A couple of Tyson employees have also been indicted. All have pleaded not guilty.