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DOJ Investigates Poultry Processors Over Price-Fixing Allegations

Tanzeel Akhtar

The Department of Justice has intervened in a price-fixing suit against the country’s biggest poultry companies, Tyson Foods, Inc. (NYSE: TSN) and Pilgrim's Pride Corporation (NASDAQ: PPC). 

The Fern reports the landmark class-action lawsuit filed by food distributor Maplevale Farms alleges that a number of poultry companies coordinated prices between 2008 and 2016, resulting in a 50% price hike for broiler chicken.

“They took this action ‘despite input costs (primarily corn and soybeans) falling roughly 20% to 23% over the same time period,’ according to the complaint.

The defendants control about 90% of the country’s poultry sector, The Fern reported. 

Tyson Foods shares were down 1.35% late in Tuesday's session; Pilgrim's Pride shares were down 1.06%; Sanderson Farms, Inc. (NASDAQ: SAFM) shares were down 2.2%; and Hormel Foods Corp (NYSE: HRL) shares were down 3.44%. 

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