O.K. Industries settles antitrust case on price collusion
by July 23, 2024 11:19 am 258 views
Fort Smith-based O.K. Industries, a subsidiary of Mexico-based Industrias Bachoco, has settled its part of a federal class action suit in the Northern District of Illinois over allegations of driving up the price of chicken for consumers and foodservice customers.
The action withdraws O.K. Foods from the trial, according to a July 17 filing.
Since early 2023, the poultry industry has settled claims of more than $274 million without admitting any guilt for allegations of boosting chicken prices over 5 years by holding back production.
O.K. Industries’ part of the settlement totaled $4.9 million. Springdale-based Tyson Foods settled for $79 million, Siloam Springs-based Simmons Food agreed to pay $8 million, and Springdale-based George’s settled for $4.1 million.
The recent settlement by O.K. Industries involves end-user consumer plaintiffs, and no terms were disclosed in the filing.
“Consistent with the parties’ agreement, end user consumer plaintiffs will move for preliminary approval, and ultimately, final approval of the proposed settlement in the near future,” noted the filing, which was submitted by the co-lead counsel for the end user consumer plaintiffs.
The two law firms representing the class are Hagens Berman Sobol Shapiro and Cohen Milstein Sellers & Toll.
While several companies reached settlements and exited the suit, none admitted guilt and all said they merely settled to end the litigation.