Tyson Foods Inc. and eight other poultry companies have reached a settlement after more than five years of legal battles, resolving allegations of suppressing wages over a period of two decades. A memorandum filed on December 23 in the U.S. District Court for Maryland indicates that the plaintiffs support a motion for preliminary approval of the settlement. The case will now await final approval from the judge before the settlement funds can be distributed.
The lawsuit claims that the companies entered into two illegal agreements that violated the Sherman Antitrust Act. These agreements allegedly involved colluding to fix wages for poultry processing workers and exchanging sensitive compensation data, actions deemed anti-competitive and in violation of antitrust laws.
Despite these allegations, all nine companies have denied any wrongdoing.
The total settlement amount reached $180 million, with the breakdown as follows:
1. Allen Harim Foods, LLC – $5 million
2. Amick Farms, LLC – $6.25 million
3. Butterball, LLC – $8.5 million
4. Fieldale Farms Corporation – $5.5 million
5. Foster Poultry Farms – $13.3 million
6. Jennie-O Turkey Store, Inc. (JOTS) – $3.5 million
7. Koch Foods, Inc. – $18.5 million
8. O.K. Foods, Inc. – $4.75 million
9. Tyson Foods, Inc. and Keystone Foods, LLC – $115.5 million
The overall settlement totals $398.05 million, making it the second-largest settlement in a labor antitrust class action. Over $200 million of this amount was allocated to cover attorney fees, administrative expenses, and litigation costs.
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