Ark. Town Seeks $29M Over Idle Pilgrim's Pride Plant

Law360, New York (June 2, 2009, 12:00 AM EDT) -- An Arkansas town has filed a $28.6 million lawsuit alleging that Pilgrim's Pride Corp.'s decision to idle the town's poultry-processing plant was part of an illegal scheme to manipulate prices so the company could stave off bankruptcy.

The price manipulation scheme did not prevent the nation's largest producer of commodity chicken from filing for Chapter 11, but it has threatened to turn Clinton, Ark., into a “modern day ghost town,” the suit claims.

Clinton filed its suit Monday in the U.S. Bankruptcy Court for the Northern...
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