A class action lawsuit filed by contract growers in the U.S. District Court for the Eastern District of Oklahoma, designated Tyson Foods, Pilgrim's Pride, Perdue Farms and Koch Foods as co-defendants. The plaintiff's alleged that the integrators colluded using shared information through an industry benchmarking service to depress grower remuneration.
To date, Tyson Foods has settled for $21 million, Perdue Farms for $15 million and Koch Foods for $16 million. The latest settlement by Wayne-Sanderson Farms for an undisclosed figure places greater pr
essure on Pilgrim's Pride to either settle or proceed to trial.
The risks of litigation associated with subscription to any industry benchmarking system are self-evident with integrators previously agreeing to substantial settlements with customer categories alleging collusion over volumes of production and hence prices.