US fast-food restaurant chain Chick-fil-A has sued several poultry suppliers as it claims to be the latest victim in the alleged price-fixing scandal, as reported by Reuters.
The lawsuit, which was filed on Friday, marks the latest litigation facing the poultry industry.
In its report, Chick-fil-A has accused the likes of Tyson Foods of inflating prices on billions of dollars of chicken that it purchased. The Atlanta-based chain says that top poultry suppliers shared confidential bidding and pricing information between them, in an attempt to artificially raise prices.
According to Reuters, the company has accused 17 suppliers including Perdue Farms, Tyson Foods, Pilgrim’s Pride and Sanderson Farms of bid-rigging and manipulating prices, causing Chick-fil-A to overpay for chicken supplies.
The lawsuit comes after the US Department of Justice (DOJ) launched an investigation into the sale of broiler chicken products in the country. The DOJ indicted 10 industry executives in separate cases this year, according to Reuters.
In October, Pilgrim’s Pride pleaded guilty to one count of conspiracy to limit competition in chicken product sales and agreed to pay a fine of $110.5 million under a plea deal.
“We believe these claims are unfounded and plan to contest the merits,” said a spokeswoman for Perdue, Andrea Staub, as cited by Reuters.
Meanwhile, representatives for Tyson, Pilgrim’s Pride and Sanderson Farms did not immediately respond to Reuters’ requests for comment.
© FoodBev Media Ltd 2020
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