March 7 (Reuters) - Food distributors that sued Perdue,
Sanderson and other major chicken producers for alleged
price-fixing have agreed to drop their claims after seven years
of litigation.
The settlement, disclosed in a Wednesday court filing in
Chicago federal court, does not include any payments. Perdue,
Sanderson and other defendants, which had won recent victories
in the cases, agreed that they would not seek to recoup defense
costs from the plaintiffs if they abandoned their remaining
claims.
The claims that suppliers fixed prices for wholesale direct
purchasers were part of broader - and still-ongoing - antitrust
litigation involving price-fixing claims from consumers and
commercial plaintiffs, including grocery stores.
The distributors had earlier secured nearly $285 million in
settlements in recent years from chicken producers including
Tyson and Pilgrim's Pride.
Representatives for Sanderson and Perdue did not immediately
respond to requests for comment. The plaintiffs' lawyers
declined to comment.
The distributors had alleged a years-long conspiracy by
major suppliers to keep wholesale prices artificially high by
curbing production and sharing nonpublic data about supply and
demand.
None of the settling companies admitted liability as part of
the proposed resolution, which they said served "to avoid the
costs, expenses and uncertainties" of continuing the litigation.
The distributor plaintiffs include Maplevale Farms in New
York, Pennsylvania-based John Gross & Company and New Jersey's
Ferraro Foods.
Last October, Sanderson defeated the distributors'
allegations at trial, and Perdue and a group of other companies
won a court order in June knocking them out of the case. The
plaintiffs were in the process of challenging those results.
The food distributors said in court filings that overturning
their losses would be a "significant" challenge and that the
potential costs the defendants could seek against the plaintiffs
were "substantial."
U.S. District Judge Thomas Durkin set a March 14 hearing to
weigh preliminary approval of the settlements.
The case is In re: Broiler Chicken Antitrust Litigation,
U.S. District Court for the Northern District of Illinois, No.
1:16-cv-08637.
Read more:
Jury sides with chicken producer Sanderson in US
price-fixing trial
US chicken producers ordered to face price-fixing claims
Chicken price-fixing plaintiffs can proceed as classes