Poultry Processors Mountaire Farms and Case Foods have agreed to pay a combined twenty-two million dollars to resolve the U.S. court's claims, suggesting wage suppression of poultry workers. With this settlement, the total amount paid out in the litigation exceeds two hundred seventeen million dollars.
According to reports by Reuters, plaintiffs' attorneys filed a request on Monday requesting U.S. District Judge Stephanie Gallagher to initially approve the settlements, marking the 10th and 11th deals in the long-standing case. Based on the settlement papers, Mountaire agreed to settle thirteen million, five hundred thousand dollars, while Case Foods will pay eight million, five hundred thousand dollars. Both North Carolina-based companies have vehemently denied any wrongdoing, reiterating their decision to settle to avoid the costs associated with further litigation.
In Monday's filing, lawyer Shana Scarlett, who is representing the plaintiffs, emphasized the inherent risks in complex antitrust class actions. She noted that despite the confidence of interim co-lead counsel, there is no guarantee of a jury finding the plaintiffs liable.
Scarlett did not respond immediately to a request for comment on Tuesday.
An Antitrust Lawsuit Filed in 2019
The lawsuit, first filed in 2019, focuses on ten poultry processors. Plaintiffs claim these companies conspired to suppress wages. They argue that companies should have competed by offering higher wages and benefits in a competitive labor market.
A group comprising tens of thousands of red meat processing workers across 140 plants claimed that JBS, Tyson, and other companies conspired for years to suppress wages artificially. The lawsuit asserted that these companies violated antitrust laws by exchanging confidential compensation data through surveys and meetings.
Tyson and JBS, major players in the meat industry, have agreed to pay one hundred twenty-seven million, two hundred thousand dollars to settle a lawsuit alleging they suppressed workers' pay at processing plants. These settlements represent the most significant agreements reached thus far in the wage-fixing case in the Colorado federal court.
In the settlement filing, the workers' attorneys stated that the immediate recovery's value outweighs the possibility of future relief after prolonged and costly litigation.
Preliminary Approval of Settlements
Gallagher has given preliminary approval to several other settlements, including one from Perdue, amounting to sixty million, six hundred thousand dollars, and another from Sanderson, resolving claims against it for thirty-eight million, three hundred thousand dollars. Wayne Farms also agreed to pay thirty-one million, five hundred thousand dollars, but none of these companies admitted liability.
As part of their cooperation agreements, Mountaire and Case must assist the plaintiffs by providing documents and other information in the ongoing case against companies that have not yet settled, including Tyson and other defendant families.
A spokesperson for Tyson did not respond immediately to a request for comment on Tuesday.
The plaintiffs' request for a court order certifying the case as a class action is expected in June. The case is Jien versus Perdue Farms Inc., in the U.S. District Court for the District of Maryland, with case number 1:19-cv-02521.
