Pilgrim’s Pride Agrees to $100M Settlement in Chicken Grower No-Poach Class Action

Pilgrim’s Pride has agreed to pay $100 million to settle claims that it conspired with more than a dozen other chicken producers to unfairly limit the pay of chicken farmers through no-poach agreements.

The settlement benefits a class of more than 24,000 broiler chicken farmers who were compensated for growing chickens between Jan. 27, 2013, and Dec. 31, 2019. A federal judge in Oklahoma certified the class in May 2024.

Pilgrim’s Pride Class Action Overview

Who: A class of more than 24,000 chicken growers was certified in a lawsuit against Pilgrim’s Pride.

Why: The lawsuit claims Pilgrim’s Pride used no-poach agreements and information sharing to suppress chicken farmer pay.

Where: The class action was filed in federal court in Oklahoma.

Allegations Against Pilgrim’s Pride

The farmers claim Pilgrim’s Pride entered into agreements with other major chicken integrators to avoid competing for farmers' services, leading to artificially suppressed pay.

The lawsuit also alleges Pilgrim’s Pride shared compensation data with other chicken producers via the agricultural data firm Agri Stats, reinforcing the alleged anti-competitive practices.

Federal Judge Finds Common Claims Among Farmers

U.S. District Judge Robert J. Shelby certified the class of broiler chicken growers, ruling that the no-poach agreements created common claims among the farmers.

“Without the risk of a competitor poaching an Integrator’s Growers by offering higher compensation, the effect of the NPA, according to Plaintiffs, was to artificially suppress Grower pay through reduced competition,” the lawsuit states.

The ruling follows previous settlements by other chicken producers, including Tyson, Perdue, Koch, and Sanderson Farms.

Case Information

The Pilgrim’s Pride class action lawsuit is In re: Boiler Chicken Grower Antitrust Litigation, Case No. 6:20-md-02977-RJS-CMR, in the U.S. District Court for the Eastern District of Oklahoma.