Agri Stats reforms aim to boost competition and protect consumers
A major U.S. antitrust lawsuit involving the chicken industry has moved closer to resolution after consumers requested final approval of a settlement with Agri Stats.
The case focuses on allegations that major chicken companies worked together to limit production and increase prices in the U.S. poultry market. Plaintiffs claim the actions reduced competition and led to higher costs for consumers across the country.
"Our antitrust team is incredibly proud of the corporate reform possible through this class-action settlement with Agri Stats after 10 years of complex litigation," said Shana Scarlett, partner at Hagens Berman representing the class. "Monetary relief will put hundreds of millions of dollars back into the pockets of consumers, and this injunctive relief will shield them from future anticompetitive behavior with major reform to this industry."
As part of the settlement, Agri Stats has agreed to implement a series of reforms aimed at preventing future anti-competitive behavior. The company will stop distributing certain detailed pricing reports and will restrict the sharing of sensitive market information.
The agreement also requires stronger antitrust compliance measures. These include annual employee training, formal compliance policy, enhanced data security standards, and oversight from an experienced antitrust attorney.
Several reporting practices are expected to change. Competitor-level pricing data, production information, participant lists, industry forecasts, and certain sales reports will be removed or modified to reduce the risk of coordinated market behavior.
Attorneys representing consumers said the reforms address key concerns raised during nearly a decade of litigation. They believe the changes will help create a more transparent and competitive marketplace in the future.
The lawsuit was originally filed in 2016 and targets several major poultry companies. It alleges that producers intentionally reduced production capacity to support higher chicken prices.
Financial settlements have already been reached with multiple defendants, totaling more than $200 million. However, litigation continues against additional companies that remain involved in the case.
If the court grants final approval, the settlement’s conduct reforms will take effect, marking one of the most significant competition-related changes ever introduced within the U.S. poultry industry.
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