Pilgrim’s Pride Settles Securities Class Action Lawsuit for $41.5 Million
Pilgrim’s Pride has reached a $41.5 million settlement in a securities class action lawsuit, resolving allegations that the company misled investors regarding competition in the poultry industry, according to court filings.
The settlement brings an end to nearly a decade of litigation in a Colorado federal court. Originally filed in 2016, the lawsuit accused Pilgrim’s Pride of concealing an industry-wide price-fixing scheme that resulted in artificially inflated chicken prices. Shareholders claimed that the company misrepresented its financial success, attributing its profitability to pricing strategies and product mix instead of alleged anti-competitive practices.
The agreement covers stock purchases made between February 2014 and November 2016 and is subject to approval by U.S. District Judge R. Brooke Jackson. Pilgrim’s Pride has not provided a statement regarding the settlement.
This is not the first legal challenge for Pilgrim’s Pride related to its pricing practices. In 2021, the company pleaded guilty to federal price-fixing charges and was fined $107.9 million. Additionally, in 2023, Pilgrim’s Pride agreed to a $100 million settlement over claims that it conspired to underpay poultry farmers.
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