American Proteins, Inc., previously a major renderer in the southeastern states, has sued Tyson Foods alleging violation of the Sherman Antitrust Act. At issue is the alleged monopoly created by Tyson Foods by contracting with Wayne Farms and Koch Foods to acquire raw material to the detriment of API. Pressure was apparently exerted by Tyson Foods to purchase the four plants owned and operated by API at a discounted value.
Tyson moved to dismiss the complaint by API, but Federal Judge Richard W. Story ruled that there was sufficient substance to the claims by API, allowing the lawsuit to continue.