Chick-fil-A has filed suit against a string of poultry producers alleging price fixing. Among its targets are some processors based in Georgia.
The metro Atlanta-based chain alleges that it purchased billions of dollars worth of chicken, its key food ingredient, “at prices that were artificially inflated” and that it was damaged by antitrust violations.
Chick-fil-A’s suit in federal court names 17 companies, including processing giants Tyson Foods, Pilgrim’s Pride and Sanderson Farms. Bloomberg reported that Sanderson declined comment and that a Tyson representative said the claims were unfounded. The New York Times reported that Pilgrim’s Pride also described the claims as unfounded.
Among the Georgia processing companies being sued by Chick-fil-A are Wayne Farms of Oakwood, Mar-Jac Poultry of Gainesville, Claxton Poultry Farms of Claxton and Harrison Poultry of Bethlehem. Harrison chief executive David Bleth said the company has never done business with Chick-fil-A and declined further comment on ongoing litigation. The three other Georgia companies were not immediately available for comment Monday afternoon to The Atlanta Journal-Constitution.
For several years, pricing fixing allegations and related lawsuits and indictments have roiled the poultry industry, by far the biggest and most lucrative sector in Georgia agriculture.
Chick-fil-A’s lawsuit cited allegations from an earlier, ongoing lawsuit brought by a slew of big buyers, from retailers such as Kroger, Walmart and Publix to Nestle, Campbell Soup, Hooters of America, Golden Corral and Cracker Barrel, among others. Some joined the suit in recent months.
Chick-fil-A also cited a recent grand jury indictment describing alleged bid rigging. Among the victims listed in the indictment was one identified under the pseudonym “QSR-5.” Chick-fil-A disclosed that it is QSR-5.
The federal indictment states that in 2014, QSR-5 announced plans to serve antibiotic-free broiler chicken meat. “Following QSR-5′s announcement, a number of Defendants communicated via phone and text message in order to share and coordinate confidential bidding and pricing information in connection with QSR-5′s request for bids relating to its planned transition to only serving ABF broiler chicken meat,” according to Chick-fil-A’s suit.
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In June, two executives from Georgia-based Claxton Poultry Farms were among four individuals named in indictments for allegedly conspiring to fix prices, according to the U.S. Justice Department. Separately, in 2018 Fieldale Farms, based in Baldwin, agreed to pay $2.2. million related to a lawsuit alleging price fixing by the major industry players.
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