Former and current executives of two major poultry suppliers were found not guilty Thursday of federal charges that their companies had colluded to manipulate the chicken prices paid by restaurants and retailers.
The allegations had been levied by the U.S. Department of Justice (DOJ) as part of a crackdown on antitrust activities among big protein suppliers. Indictments against the defendants were first issued by DOJ in June 2020 and resulted in two earlier trials, both of which resulted in hung juries.
In the case resolved yesterday in a U.S. court in Colorado, the five defendants were accused of participating in an informal network where chicken suppliers would share pricing and supply information to artificially lift prices. They worked at the time for Pilgrim’s Pride and Claxton Poultry Farms.
Among the information shared was the bidding on contracts from restaurant and grocery chains, according to DOJ. The identities of those operations were not disclosed, but court documents allege the manipulation extended to wings and dark-meat pieces like thighs—two forms of poultry that have been much in demand in recent years.
According to attorneys for the DOJ, the collaboration amounted to a violation of federal anti-trust rules.
The alleged infractions occurred from 2012 through 2019, DOJ said.
The jury trial was the third one brought by DOJ against the defendants. In the first two attempts at conviction, the juries could not reach a unanimous decision on the guilt or innocence of the defendants.
The five acquitted Thursday were Bill Lovett, a former CEO of Pilgrim’s Pride; Jayson Penn, another former CEO of Pilgrim’s Pride; Roger Austin, identified on his LinkedIn page as VP of fresh foods for Pilgrim’s; Mikell Fries, president of Claxton; and Scott Brady, a VP of Claxton.
The decision came in the U.S. District Court for Colorado as other legal actions—civil, not criminal—continue to unfold against meat suppliers accused of fixing prices.
Earlier this week, plaintiffs in a class-action suit against pork producers revealed that a defendant in one of those cases, Smithfield Foods, had agreed to pay $42 million to settle accusations that it had colluded with other pork processors. Smithfield admitted no guilt in offering to settle.
The Biden administration has maintained that consolidation within the meat and poultry processing industry tends to limit competition and push up wholesale prices, with potentially illegal industry conventions adding more pressure. It has announced plans to foster more competition by helping to fund smaller processors.
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