Tyson Foods Inc. settles in multi-million lawsuit
The second largest labor antitrust class action lawsuit is one step closer to ending.
FAYETTEVILLE, Ark. (KNWA/KFTA) — Tyson Foods Inc. and eight other poultry companies have settled after five years of litigation stating that for more than two decades, it has suppressed pay.
A Dec. 23 memorandum was filed in the U.S. District Court of Maryland that states the plaintiffs support the motion for preliminary approval of the settlement. Now the judge must approve the settlement for funds to be dispersed.
A total of $180 million was settled between the nine companies:
- Allen Harim Foods, LLC, $5 million
- Amick Farms, LLC, $6.25 million
- Butterball, LLC, $8.5 million
- Fieldale Farms Corporation, $5.5 million
- Foster Poultry Farms, $13.3 million
- Jennie-O Turkey Store, Inc. (JOTS), $3.5 million
- Koch Foods, Inc., $18.5 million
- O.K. Foods, Inc., $4.75 million
- Tyson Foods, Inc. and Keystone Foods, LLC $115.5 million
Who could qualify for the settlement?
If the judge approves the settlement that all parties have agreed to then people who worked for any of the listed nine companies from Jan. 1, 2000, to July 20, 2021, can apply for the settlement.
"[a]ll persons employed by Defendant Processors, their subsidiaries, and/or related
entities at poultry processing plants, poultry hatcheries, poultry feed mills, and/or poultry
complexes in the continental United States from January 1, 2000 until July 20, 2021.”
A total of $398.05 million was settled making this the second-largest settlement in a labor antitrust class action. More than $200 million was spent on attorney fees, administration costs, and litigation fees.
People NOT included in the settlement:
- complex managers
- plant managers
- human resources managers
- human resources staff
- office clerical staff
- guards
- watchmen
- salespersons of the Defendants,
- alleged coconspirators
- any subsidiaries, predecessors, officers or directors
- federal, state or local governmental entities
What did the lawsuit claim?
The lawsuit states that the companies entered two unlawful agreements that violated the Sherman Anti-Trust Act. It states that the companies entered an "illegal agreement to fix compensation for poultry processing workers; and (2) an agreement to exchange competitively sensitive compensation information, in violation of the rule of reason."
But all the companies deny wrongdoing.