Tyson Foods Inc said it would pay USD221.5m to settle price-fixing litigation with two more groups of plaintiffs accusing it of illegally conspiring to inflate prices in the USD65bn chicken industry, according to Reuters. After the announcement, Tyson Foods’ shares rose.
Earlier this month, Tyson Foods and Pilgrim’s Pride, the second-largest US poultry company, had settled the collusion charges. The plaintiffs that included restaurant chains, supermarket operators, and food distributors accused Tyson Foods and other major chicken producers of cooperation on output and pricing.
“The payment will be reflected in the company’s first-quarter 2021 financial statements, in settlement of all outstanding claims brought by the classes,” Tyson representatives said. “While the Company does not admit any liability as part of the settlements, it believes that the settlements were in the best interests of the company and its shareholders to avoid the uncertainty, risk, expense, and distraction of protracted litigation.”