PILGRIM’S PRIDE FINED $110.5 MILLION FOR PRICE FIXING

On October 13, 2020, Pilgrim’s Pride Corporation (“PPC”) announced that it had entered into a plea agreement with the Antitrust Division of the U.S. Department of Justice (“DOJ”) with respect to the DOJ’s investigation into the sales of broiler chicken products in the United States.  PPC agreed to pay a $110.5 million fine after striking a plea deal with the DOJ regarding price-fixing allegations that ensnared two former CEOs of the second-largest American producer of chicken.  Under the plea agreement, which is subject to approval by the U.S. District Court for the District of Colorado, PPC will pay a fine of $110.5 million for restraint of competition that affected three contracts for the sale of chicken products to one customer in the United States. The agreement does not recommend a monitor, any restitution or probationary period, and provides that the Antitrust Division will bring no further charges against PPC in this matter, provided that the company complies with the terms of the agreement. 

Federal prosecutors expanded their probe with an indictment earlier this month of six chicken-industry executives and managers.  Building on a June indictment, prosecutors said a total of ten people conspired over phone calls and text messages to rig prices paid by quick-serve restaurants between 2012 and 2019.  

Included in the indictment are William Lovette, who stepped down as CEO of PPC in 2019, and Jayson Penn, who succeeded Lovette and was first named in an indictment in June.  Penn left Pilgrim’s last month and has pleaded not guilty.

“We are encouraged that today’s agreement concludes the Antitrust Division’s investigation into Pilgrim’s, providing certainty regarding this matter to our team members, suppliers, customers and shareholders,” said Fabio Sandri, PPC’s CEO.