Jan 27 (Reuters) - Meat industry giant Pilgrim's Pride

has agreed to pay $41.5 million to settle a securities class

action alleging the company artificially boosted its stock price

by making false and misleading statements about chicken industry

competition.

The settlement disclosed late on Friday culminated nearly a

decade of litigation in federal court in Colorado against

Pilgrim's Pride, one of the largest U.S. poultry processors.

The 2016 lawsuit accused Colorado-based Pilgrim's Pride of

concealing an industry-wide price-fixing scheme to charge

artificially high prices for chicken. The shareholders said

Pilgrim's Pride misrepresented that its profitability was based

on its product mix, pricing strategy and other factors.

The settlement covers purchases of stock in the company

between February 2014 and November 2016. U.S. District Judge R.

Brooke Jackson must approve the deal.

Pilgrim's Pride, owned mainly by Brazil's JBS SA, and a lead

attorney for the plaintiffs did not immediately respond to

requests for comment.

Pilgrim's Pride has denied the claims and did not admit

wrongdoing in agreeing to settle.

The plaintiffs' lawyers said the estimated average

settlement recovery is $0.59 per affected share, before

deductions of fees and expenses.

The class attorneys said they would seek up to 33.3%, or

about $13.8 million, in legal fees from the settlement fund.

Pilgrim's Pride has earlier faced antitrust lawsuits over

pricing and competition.

The company in 2021 pleaded guilty in federal court and was

ordered to pay a $107.9 million fine, resolving U.S. charges

that it conspired to fix chicken prices.

In 2023, the meat processor agreed to pay $100 million to

settle claims that it conspired with rivals to underpay chicken

farmers.

The case is In re Pilgrim's Pride Corp Securities

Litigation, U.S. District Court for the District of Colorado,

No. 1:16-cv-02611-RBJ.

For plaintiffs: Lewis Kahn of Kahn Swick & Foti

For Pilgrim's Pride: Caroline Zalka of Weil, Gotshal &

Manges

Read more:

Pilgrim's Pride in $100 million settlement over chicken

farmers' pay

US chicken producers ordered to face price-fixing claims

Antitrust charges against ex-Pilgrim's Pride executives

dismissed