Pilgrim's Ordered To Pay $26M For Price Manipulation

Law360, New York (October 3, 2011, 4:53 PM EDT) -- A Texas federal judge on Friday fined Pilgrim's Corp. $26 million, saying the poultry producer violated antitrust law when it suspended operations at a plant during the company’s bankruptcy proceedings, artificially driving up the price of chickens while leaving contracted growers out in the cold.

U.S. Magistrate Judge Charles Everingham IV ordered Pilgrim's, formerly known as Pilgrim's Pride, to pay dozens of its contracted chicken growers, who lost work when Pilgrim's abruptly idled an Arkansas plant and two others under the pretext of cutting costs while...
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