Antitrust Law Daily Wrap Up, ANTITRUST—N.D. Ill.: Preliminary settlement approved in turkey purchasers price-fixing suit, (Jul 31, 2026)

By Donielle Tigay Stutland, J.D.

The court approved an $18.7M settlement with turkey processors House of Raeford Farms, Inc. and Prestage Farms, Inc.

The federal district court in Chicago, Illinois granted preliminary approval of a settlement totaling $18.7M for direct purchaser plaintiffs (“DPPs”) in the in the ongoing antitrust litigation against turkey producers. The DPPs have entered into settlement agreements with Defendant House of Raeford Farms, Inc., Prestage Farms, Inc., Prestage Foods, Inc., and Prestage Farms of South Carolina, LLC, Foster Farms LLC and Foster Poultry Farms LLC, and Perdue Farms, Inc. and Perdue Foods LLC on behalf of the direct purchaser litigation class previously certified by the court (In Re Turkey Antitrust Litigation, No. 1:19-cv-08318 (N.D. Ill. Jul. 30, 2026)).

Background. In late 2019, a proposed class of turkey product direct purchasers filed the initial complaint in this antitrust litigation. The direct purchasers alleged that the defendant turkey processors violated Section 1 of the Sherman Act by engaging in a conspiracy that involved the exchange of operations information in an effort to suppress turkey production and increase turkey prices. Over time, the courts consolidated five antitrust lawsuits in the Northern District of Illinois, with a sixth lawsuit, Carina Ventures LLC v. Agri Stats, Inc., No. 23 C 16948 (N.D. Ill), deemed related pursuant to Local Rule 40.4 and assigned to the court but not consolidated with this case.

In July 2023, Aramark Food and Support Services Group, Inc. (Aramark), a member of the putative class of direct purchasers, filed its own Sherman Act Section 1 action in lieu of waiting for a class certification decision. The turkey processing defendants in the instant Aramark matter moved for dismissal on the basis that Aramark exceeded the four-year limitations period under 15 U.S.C. § 15b, but the court denied dismissal on the basis that American Pipe tolling of the statute of limitations did not stop when the original statute of limitations ran. The court held tolling would continue until after class certification. The court ordered the turkey processors to file an answer to Aramark’s amended complaint. (see Antitrust Law Daily, Jan. 23, 2025).

Class certification. The court previously certified the following DPP litigation class: All persons and entities who directly purchased fresh or frozen, uncooked turkey breast, ground turkey, or whole bird turkey products (the “Class Products”) from Defendants in the United States during the Class Period.

Preliminary settlement. DPPs have entered into the Settlement Agreements with House of Raeford, Prestage, Foster Farms, and Perdue on behalf of the Certified Class. Under the Settlement Agreements, House of Raeford will pay $3.7 million and Prestage will pay $15 million to the certified class. The House of Raeford and Prestage Settlements represent a significant percentage of single damages: House of Raeford is paying 16.7% and Prestage is paying 27.3% of DPPs’ single damages. On DPPs’ request, Agri Stats, House of Raeford, and Prestage House of Raeford will also provide material cooperation to DPPs, including authenticating and providing foundation for documents and providing up to two trial witnesses in remaining matters to assist DPPs at trial against the remaining Non-Settling Defendants. In exchange, DPPs and the Certified Class will, among other things, separately release all Released Claims against the House of Raeford and Prestage Settling Defendants that were, or could have been, brought in the litigation arising from DPPs’ allegations. The House of Raeford and Prestage Settlement proceeds (with accrued interest) will be used to: (1) pay notice costs and costs incurred in administration and distribution; (2) pay taxes and tax-related costs associated with the escrow accounts; (3) make a distribution to the Certified Class in accordance with a plan to be filed in the future; and (4) pay attorneys’ fees, litigation expenses, and service awards in accordance with a plan to be filed in the future.

The $18.7 million in additional monetary payments from the House of Raeford and Prestage Settlements joins the $40.5 million from previous settlements, including settlements with Cargill and Tyson Foods. In July 2026, the court granted summary judgment in favor of defendants Foster Farms and Perdue. Following this, the parties entered settlement agreements. Under the terms of the Foster Farms and Perdue Settlements, DPPs and Foster Farms, and DPPs and Perdue mutually agree to waive any rights to appeal or otherwise further adjudicate their claims against each other in the litigation. In exchange, the DPPs and Foster Farms, and DPPs and Perdue agree not to seek or assert any claim for costs, fees, attorney’s fees or any other form of recovery against the other. The Foster Farms and Perdue Settlements do not include any additional Class release provisions, do not provide for the recovery of additional attorney fees by Co-Lead Class Counsel, and will eliminate the DPPs having to pay any recoverable costs to Foster Farms or Perdue.

It was noted that all settlement agreements were the product of confidential, arm’s-length negotiations by experienced counsel after substantial discovery and motion practice. The DPPs’ motion also represented that the Settlements’ fairness, reasonableness, and adequacy is supported by the relief obtained for the Certified Class.

The Case is No. 1:19-cv-08318.

Judge: Harjani, S.

Attorneys: Abby R. Wolf (Hagens Berman Sobol Shapiro LLP) for John Gross and Co. Inc. Jacob D. Koering (Paddock & Stone, PLC) for Agri Stats, Inc.

Companies: House of Raeford Farms, Inc.; Prestage Farms, Inc.; Prestage Foods, Inc.; Prestage Farms of South Carolina, LLC; Foster Farms LLC; Foster Poultry Farms LLC; Perdue Farms, Inc.; Perdue Foods LLC

Cases: Antitrust IllinoisNews