On Eve of Super Bowl, Food Distributors Declare War on Chicken Wing Producers
US Foods and Sysco sued major chicken producers in federal court in Illinois on Tuesday.
January 31, 2018 at 03:28 PM
3 minute read
As football fans across the country purchase millions of chicken wings ahead of Sunday's big game, two major food producers are claiming poultry prices are illegally fixed.
US Foods Inc. and Sysco Corp. each filed an antitrust lawsuit in the U.S. District Court for the Northern District of Illinois on Tuesday against more than two dozen poultry companies. The distributors allege the companies, including Tyson Foods, Pilgrim's Pride, Sanderson Farms and Perdue Farms, have engaged in an illegal scheme to keep chicken prices high since as early as 2008 through at least 2016.
“By their wrongful conduct as alleged in this complaint, defendants not only materially reduced or eliminated the historical boom and bust cycle of the chicken industry, they propped up chicken prices during periods of rapidly falling input costs by, among other means, coordinating supply restrictions and manipulating one or more broiler price indices,” the complaints said.
US Foods and Sysco are represented by veteran commercial litigation partners Scott Gant and Jonathan Shaw of Boies Schiller Flexner's Washington, D.C., office, and associate Kyle Smith. Just a few months ago, Gant argued before the Supreme Court in Patchak v. Zinke, representing a property owner in a separation of powers case.
As of Wednesday, the two cases appeared to be assigned to different judges. Judge Charles Norgle is currently in charge of US Foods' lawsuit, and Judge Elaine Bucklo will oversee Sysco's.
Tuesday's complaints follow a series of legal wrinkles chicken producers have faced in the past few years. Fieldale Farms, one of the defendants, reached a $2.25 million settlement in a similar class action lawsuit last summer. Florida Attorney General Pam Bondi is also investigating chicken producers, including defendants in the distributors' lawsuits.
Spokespeople for Tyson's and Pilgrim's Pride said the claims are meritless, and that the companies look forward to defending their positions in court. A Perdue spokeswoman said the company does not comment on pending litigation, and a spokesperson for Sanderson Farms could not be reached for comment.
“Follow-on complaints like these are common in antitrust litigation,” said Tyson spokesman Gary Mickelson. “Such complaints do not change our position that the claims are unfounded. We will continue to vigorously defend our company.”
The lawsuits claim the poultry companies used two “mechanisms” to implement their scheme. First, the complaints say the companies collusively reduced their “breeder flocks,” purposely diminishing their ability to increase supply when prices increased.
The lawsuit also claims the companies manipulated the “Georgia Dock,” a benchmark price compiled by the Georgia Department of Agriculture based on self-reported numbers. The GDA suspended use of the Georgia Dock in late 2016 amid scrutiny from the U.S. Department of Agriculture and media reports.
The reduction scheme, the suit claims, was aided by Agri Stats Inc., an industry information company owned by Eli Lilly & Co. Though Agri Stats reports poultry producer information anonymously, the lawsuit claims it provided extremely detailed information that allowed producers to discern each others' identities.
Agri Stats is also a defendant in the lawsuit. A company spokesman did not immediately return a request for comment.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllDC Judge Chutkan Allows Jenner's $8M Unpaid Legal Fees Lawsuit to Proceed Against Sierra Leone
3 minute read4th Circuit Upholds Virginia Law Restricting Online Court Records Access
3 minute readTrump Administration Faces Legal Challenge Over EO Impacting Federal Workers
3 minute readPrivate Equity Giant KKR Refiles SDNY Countersuit in DOJ Premerger Filing Row
3 minute readTrending Stories
- 1LexisNexis Announces Public Availability of Personalized AI Assistant Protégé
- 2Some Thoughts on What It Takes to Connect With Millennial Jurors
- 3Artificial Wisdom or Automated Folly? Practical Considerations for Arbitration Practitioners to Address the AI Conundrum
- 4The New Global M&A Kings All Have Something in Common
- 5Big Law Aims to Make DEI Less Divisive in Trump's Second Term
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250