Pilgrim’s Pride reaches plea deal on chicken price-fixing
Pilgrim’s Pride Corp. has reached a plea agreement with the U.S. government over charges of price-fixing in the chicken industry.
Under the agreement, Pilgrim’s Pride would pay a fine of $110.5 million as a penalty for restraining competition in three separate contracts with a U.S. customer. In exchange, the U.S. Department of Justice would not bring further charges against Pilgrim’s Pride or recommend a monitor or any probationary period.
The agreement must still be approved by the U.S. District Court in Colorado. Pilgrim’s Pride had been scheduled to face price-fixing charges in federal court on Thursday, according to court filings.
“Pilgrim’s is committed to fair and honest competition in compliance with U.S. antitrust laws,” Pilgrim’s CEO Fabio Sandri said in a statement.
The Department of Justice confirmed the plea deal but said it won’t comment until the agreement is filed with the court.
The agreement does not appear to impact ongoing cases against former
Pilgrim’s Pride executives.
In June, the government charged two executives - Pilgrim’s Price President and CEO Jayson Penn and former vicepresident Roger Austin - with conspiring to fix prices and rig bids for broiler chickens from at least 2012 to 2017. Both have pleaded not guilty. Penn left Pilgrim’s Pride last month.
The charges were among the first in a long-running government investigation into price-fixing in the poultry industry. (AP)