By Mike Scarcella
Tyson Foods (TSN.N), and eight other poultry processors have agreed to pay $180 million to resolve a lawsuit in U.S. court claiming they conspired to suppress poultry workers' wages, in an agreement that pushes total settlements in the case to nearly $400 million.
The workers’ attorneys on Monday in a court filing, asked U.S. District Judge Stephanie Gallagher in Maryland to preliminarily approve the nine new settlements.
Other settling defendants include Foster Farms, Koch Foods and Butterball. Major meat processors including Perdue and Sanderson earlier agreed to settle the workers’ claims.
Tyson, Koch, Foster and Butterball denied any wrongdoing, but settled to avoid the uncertainty, burden and cost of further litigation, settlement papers show. The other settling companies also denied the workers’ claims.
Representatives from Tyson, Koch, Foster and Butterball did not immediately respond to requests for comment.
The workers alleged the meat processors violated U.S. antitrust law by agreeing to fix compensation at poultry processing plants, hatcheries and other workplaces since 2009.
Tyson and subsidiary Keystone said they will pay $115.5 million, and Koch is paying $18.5 million, the settlement papers show. Foster will pay $13.3 million, and Butterball agreed to pay $8.5 million.
The plaintiffs’ lawyers called the settlements reached in the case “historic,” telling the court that the overall dollar amount marks the second-largest ever recovery in a labor-focused antitrust class action.
The settling companies are expected to cooperate with the plaintiffs as they pursue antitrust claims against the sole remaining defendant, Indiana-based consulting company Agri Stats, the workers’ court filings said.
The plaintiffs said the settlement generally will allow them to obtain what they called key evidence, including data, documents and testimony. Agri Stats did not immediately respond to a request for comment.
The case is Judy Jien v. Perdue Farms Inc, U.S. District Court for the District of Maryland, No. 1:19-cv-02521.
For plaintiffs: Brent Johnson of Cohen Milstein Sellers & Toll; Shana Scarlett of Hagens Berman Sobol Shapiro; and George Farah of Handley Farah & Anderson
For Tyson: John Terzaken of Simpson Thacher & Bartlett
For Koch: Russell Gray of Baker Donelson
For Foster Farms: Carmine Zarlenga of Mayer Brown
For Butterball: Hayden Silver III of Womble Bond Dickinson