Tyson, Perdue to pay $35 million dollars to settle with chicken farmers
OMAHA, Neb.-- Two of the industry's biggest poultry companies have agreed to pay nearly 35 million dollars to settle a lawsuit, that accused them of conspiring to fix the prices paid to farmers who raise the chickens.
Tyson Foods and Perdue Farms agreed to the settlements last week without admitting any wrongdoing, while the lawsuit remains pending against several other industry giants.
The lawsuit that Alabama farmers field in Oklahoma Federal Court alleges, that the contract grower system the meat companies created pushed them deep into debt to build and maintain chicken barns that met company standards.
They also said the companies colluded to fix farmer compensation at low levels to boost corporate profits.