`
`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`BOSTON MARKET CORPORATION,
`
`
`Plaintiff,
`
`
`
`
`
`
`
`
`COMPLAINT
`
`Jury Trial Demanded
`
`v.
`
`TYSON FOODS, INC.; TYSON CHICKEN,
`INC.; TYSON BREEDERS, INC.; TYSON
`POULTRY,
`INC.;
`PILGRIM’S
`PRIDE
`CORPORATION; KOCH FOODS, INC.; JCG
`FOODS OF ALABAMA, LLC; JCG FOODS
`OF GEORGIA, LLC; KOCH MEAT CO., INC.;
`SANDERSON FARMS, INC.; SANDERSON
`FARMS,
`INC.
`(FOOD
`DIVISION);
`SANDERSON FARMS, INC. (PRODUCTION
`DIVISION); SANDERSON FARMS,
`INC.
`(PROCESSING DIVISION); HOUSE OF
`RAEFORD
`FARMS,
`INC.; MAR-JAC
`POULTRY, INC.; PERDUE FARMS INC.;
`PERDUE FOODS LLC; WAYNE FARMS,
`LLC; FIELDALE FARMS CORPORATION;
`GEORGE’S, INC.; GEORGE’S FARMS, INC.;
`SIMMONS
`FOODS,
`INC.;
`SIMMONS
`PREPARED FOODS, INC.; O.K. FOODS,
`INC.; O.K. FARMS, INC.; O.K. INDUSTRIES,
`INC.; PECO FOODS,
`INC.; HARRISON
`POULTRY, INC.; FOSTER FARMS, LLC;
`FOSTER POULTRY FARMS; NORMAN W.
`FRIES, INC. d/b/a CLAXTON POULTRY
`FARMS, INC.; MOUNTAIRE FARMS, INC.;
`MOUNTAIRE FARMS, LLC; MOUNTAIRE
`FARMS OF DELAWARE, INC.; AMICK
`FARMS, LCC; THE AMICK COMPANY,
`INC., AMICK-OSI BROILERS, LLC; AMICK-
`OSI PROCESSING, LLC; CASE FOODS,
`INC.; CASE FARMS, LLC; CASE FARMS
`PROCESSING, INC.; and AGRI STATS, INC,
`
`
`Defendants.
`
`
`
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`
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`Plaintiff Boston Market Corporation (“Boston Market”), brings this action for damages
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`under the antitrust laws of the United States and the laws of Arizona, California, District of
`
`Columbia, Florida, Illinois, Kansas, Michigan, Minnesota, Nebraska, Nevada, New Hampshire,
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`New Mexico, New York, North Carolina, Rhode Island, South Carolina, Virginia and Wisconsin
`
`against Tyson Foods, Inc.; Tyson Chicken, Inc.; Tyson Breeders, Inc.; Tyson Poultry, Inc.;
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`Pilgrim’s Pride Corporation; Koch Foods, Inc.; JCG Foods of Alabama, LLC; JCG Foods of
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`Georgia, LLC; Koch Meat Co., Inc.; Sanderson Farms, Inc.; Sanderson Farms, Inc. (Food Division);
`
`Sanderson Farms, Inc. (Production Division); Sanderson Farms, Inc. (Processing Division); House
`
`of Raeford Farms, Inc.; Mar-Jac Poultry, Inc.; Perdue Farms Inc.; Perdue Foods LLC; Wayne
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`Farms, LLC; Fieldale Farms Corporation; George’s, Inc.; George’s Farms, Inc.; Simmons Prepared
`
`Foods, Inc.; O.K. Foods, Inc.; O.K. Farms, Inc.; O.K. Industries, Inc.; Peco Foods, Inc.; Harrison
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`Poultry, Inc.; Foster Farms, LLC; Foster Poultry Farms; Norman W. Fries, Inc. d/b/a Claxton
`
`Poultry Farms, Inc.; Mountaire Farms, Inc.; Mountaire Farms, LLC; Mountaire Farms of Delaware,
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`Inc.; Amick Farms, LLC; The Amick Company, Inc.; Amick-OSI Broilers, LLC; Amick-OSI
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`Processing, LLC; Case Foods, Inc.; Case Farms, LLC; Case Farms Processing, Inc.; and Agri Stats,
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`Inc. (collectively, the “Defendants”), and alleges:
`
`I.
`
`INTRODUCTION
`
`1.
`
`Defendants are horizontal competitors in the United States chicken market.
`
`Defendants and their co-conspirators conducted a long-running conspiracy (the “Conspiracy”)
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`extending from at least January 2008 through at least 2017 (the “Conspiracy Period”) to restrain
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`production, manipulate price indices, fix prices and rig bids, the purpose and effect of which was to
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`fix, raise, stabilize and maintain prices of chicken meat throughout the United States.
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`
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`
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`2.
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`Chickens raised for meat consumption (“Broilers” or “Broiler”) 1 constitute
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`approximately 98% of all chicken meat sold in the United States. Defendants are the leading
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`suppliers of Broilers and control approximately 90% of the wholesale Broiler market. The Broiler
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`industry is a highly concentrated market with over $30 billion in annual wholesale revenue.
`
`3.
`
`The commoditized nature of Broilers, in conjunction with the (a) significantly high
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`barriers to entry, (b) access to competitors’ commercially sensitive data, (c) highly concentrated
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`market dominated by vertically-integrated producers, (d) inelastic demand for the product, and (e)
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`opportunities to conspire at trade association meetings, investor conferences, competitor plant tours,
`
`and other contacts among competitors made the Broiler industry particularly susceptible to
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`anticompetitive manipulation. These factors, among others, enabled Defendants to effectively
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`conspire to inflate the prices of Broilers above those that would prevail in a competitive market.
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`4.
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`In 2007, the price of Broilers decreased. As a result—commencing as early as
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`January 2008 and continuing throughout the Conspiracy Period—Defendants conspired to curtail
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`competition in the market for Broilers by reducing the supply of Broilers, manipulating the price
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`indices for wholesale Broilers, and fixing prices and rigging bids for Small Bird Broilers2 sold to
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`Boston Market and other restaurants.
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`5.
`
`Defendants used multiple means to sustain the Conspiracy. First, beginning in 2008,
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`Defendants engaged in a series of supply reductions at the start of the distribution chain.
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`Defendants purposefully destroyed breeder hens and eggs to achieve these artificial decreases in
`
`
`1 Broiler chickens specifically refer to chickens raised for meat consumption to be slaughtered
`before the age of 10–13 weeks. Broilers can be sold fresh or frozen, raw or cooked, or whole or in
`parts, or as a meat ingredient in a value added product. As used in this Complaint the term
`“Broilers” excludes chicken grown, processed, and sold according to halal, kosher, free-range, or
`organic standards.
`2 Generally, Small Birds are defined as birds slaughtered between 7 and 9 weeks, weighing less than
`4 and 1/4 pounds.
`
`2
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`
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`
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`Broiler supply. Defendants also manipulated the price index associated with wholesale Broiler
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`prices at the end of the distribution chain. Defendants’ conduct ensured that buyers purchased
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`Broilers from Defendants at inflated non-competitive prices.
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`6.
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`In furtherance of the Conspiracy, Defendants reached anti-competitive agreements
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`and understandings during regularly scheduled trade association meetings, investor conferences,
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`competitor plant tours, and other contacts with one another.
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`7.
`
`Defendants also coordinated their strategy for achieving their desired anti-
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`competitive ends by exchanging confidential and commercially sensitive information regarding
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`production, capacity, and pricing of Broilers. As part of this strategy, Defendants exchanged
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`information regarding anticipated future production through Defendant Agri Stats, Inc. (“Agri
`
`Stats”). Defendants used this data to coordinate production outputs, monitor each other’s
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`production figures for Broilers, and otherwise facilitate the Conspiracy.
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`8.
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`Defendants also engaged in a conspiracy targeted at restaurants like Boston Market
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`that purchased Small Bird Broilers (“Small Bird Conspiracy”). Boston Market, like many
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`restaurants, contracted directly with Defendants for the purchase of their proprietary chicken
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`products. Boston Market submitted requests for bids to multiple Defendants to supply the Boston
`
`Market system with Small Bird Broilers.
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`9.
`
`Starting as early as 2012 and continuing until as late as 2017 (“Small Bird
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`Conspiracy Period”), Defendants conspired to fix prices and submit artificially high bids to Boston
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`Market and other restaurants in an effort to drive up Small Bird Broiler prices, and in turn,
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`Defendants’ profits.
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`10.
`
`As a result of Defendants’ Small Bird price-fixing and bid-rigging Conspiracy,
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`Defendants were able to exact significant price increases from Boston Market and other restaurants
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`3
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`
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`at the same time wholesale prices of Small Bird Broilers were decreasing.
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`11.
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`Defendants adhered to their collusive agreements and understandings throughout the
`
`Conspiracy Period. Defendants reaped the benefits of their illegal conduct through their production
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`and sale—directly and through their wholly-owned or controlled subsidiaries and affiliates—of
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`Broilers at inflated non-competitive prices. Indeed, during key periods in the Conspiracy Period
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`Defendants continuously urged one another to “lower supply in order to offset reduced demand and
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`to support higher market prices.”
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`12.
`
`Through their collusive, anticompetitive actions, Defendants negated the economic
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`benefits of increased competition. Defendants’ conduct resulted in their customers, including
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`Boston Market, paying at least hundreds of millions of dollars in overcharges to Defendants.
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`13.
`
`Defendants concealed their anticompetitive and unlawful conduct from their
`
`customers, regulators, and the public. For instance, it was not publicly known until November 2016
`
`that certain Defendants and their co-conspirators manipulated and artificially inflated the George
`
`Dock price index. And, it was not until June 2020 with the Department of Justice’s Indictment of
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`executives of Defendants Claxton and Pilgrim’s Pride that Defendants’ conspiracy to fix prices and
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`rig bids of Small Bird Broilers to restaurants like Boston Market was revealed.
`
`14.
`
`“Plus factors” are economic actions and outcomes, above and beyond parallel
`
`conduct by oligopolistic firms that are generally inconsistent with unilateral conduct but largely
`
`consistent with explicitly coordinated action. Numerous “plus factors” existed in the Broiler
`
`industry during the Conspiracy Period including, but not limited to: (i) extensive information
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`sharing through Agri Stats and other means; (ii) numerous opportunities for Defendants to collude
`
`in a variety of forums; (iii) inter-Defendant trades and purchases that often were against
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`independent self-interest; (iv) increased exports of Broilers to other countries that were also often
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`4
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`
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`against independent self-interest; (v) multiple industry characteristics that facilitated collusion,
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`such as high vertical integration, high barriers to entry, high industry consolidation and
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`concentration, inelastic supply and demand, a lack of significant substitutes for chicken, depressed
`
`economic conditions, and a history of government investigations and collusive conduct; and (vii)
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`the manipulation of the Georgia Dock price index.
`
`II. PARTIES
`
`A.
`
`Plaintiff
`
`15.
`
`Boston Market Corporation is a Delaware corporation with its principal place of
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`business in Golden, Colorado. During the Conspiracy Period, Boston Market operated over 450
`
`stores across the country, and was registered to do business in each state in which it operated,
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`including Arizona, California, District of Columbia, Florida, Illinois, Kansas, Michigan, Minnesota,
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`Nebraska, Nevada, New Hampshire, New Mexico, New York, North Carolina, Rhode Island, South
`
`Carolina, Virginia and Wisconsin.
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`16.
`
`Boston Market brings this action on its own behalf, and additionally and
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`alternatively, as assignee of its purchasing agents, Ben E. Keith Company d/b/a Ben E. Keith Foods,
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`HAVI Global Solutions, Mattingly Foods, Inc., and McLane Foodservice, Inc. f/k/a MBM
`
`Corporation, Willow Run Foods, Inc., and their respective affiliates (“Assignors”). During the
`
`Conspiracy Period, Boston Market purchased Broilers directly from Defendants, Defendants’
`
`subsidiaries and affiliates, entities owned or controlled by Defendants, or agents Defendants or
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`Defendants’ subsidiaries and affiliates controlled.
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`17.
`
`Also during the Conspiracy Period, Assignors purchased Broilers on Boston
`
`Market’s behalf from Defendants and/or their co-conspirators, including Tyson and Pilgrim’s Pride.
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`Assignors have assigned their claims arising out of these purchases to Boston Market.
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`5
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`18.
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`Boston Market and its Assignors purchased hundreds of millions of dollars’ worth of
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`Broilers from Defendants directly at artificially inflated prices throughout the Conspiracy Period.
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`Boston Market contracted directly with Defendants for the purchase of Broilers, negotiating the
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`price and quantity at which Defendants would supply Broilers to Boston Market.
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`19.
`
`Boston Market also purchased Broilers indirectly from Defendants, Defendants’
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`subsidiaries and affiliates, entities owned or controlled by Defendants, or agents Defendants or
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`Defendants’ subsidiaries and affiliates controlled for use in food preparation in Boston Market’s
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`locations, and not for resale in unaltered form.
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`20.
`
`The purchase orders for Broilers supplied to Boston Market restaurants were created
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`and issued from Boston Market restaurant locations in multiple states, including Arizona,
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`California, District of Columbia, Florida, Illinois, Kansas, Michigan, Minnesota, Nebraska, Nevada,
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`New Hampshire, New Mexico, New York, North Carolina, Rhode Island, South Carolina, Virginia
`
`and Wisconsin. Boston Market restaurants also received invoices for and shipments of Broilers. As
`
`such, Boston Market has suffered antitrust injury as a result of Defendants’ anticompetitive and
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`unlawful conduct.
`
`21.
`
`Boston Market was damaged by Defendants’ anticompetitive and illegal conduct by
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`paying artificially inflated prices for Broilers. Boston Market brings this action to recover the
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`overcharges it paid for Broilers purchased during the Conspiracy Period.
`
`B.
`
`(i)
`
`Defendants
`
`Tyson
`
`22.
`
`Defendant Tyson Foods, Inc. is a publicly held Delaware corporation headquartered
`
`in Springdale, Arkansas.
`
`23.
`
`Defendant Tyson Chicken, Inc. is a Delaware corporation headquartered in
`
`Springdale, Arkansas. Tyson Chicken, Inc. is a wholly-owned subsidiary of Defendant Tyson
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`6
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`
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`Foods, Inc.
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`24.
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`Defendant Tyson Breeders, Inc. is a Delaware corporation headquartered in
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`Springdale, Arkansas. Tyson Breeders, Inc. is a wholly-owned subsidiary of Defendant Tyson
`
`Foods, Inc.
`
`25.
`
`Defendant Tyson Poultry, Inc. is a Delaware corporation headquartered in
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`Springdale, Arkansas. Tyson Poultry, Inc. is a wholly-owned subsidiary of Defendant Tyson
`
`Foods, Inc.
`
`26.
`
`Defendants Tyson Foods, Inc., Tyson Chicken, Inc., Tyson Breeders, Inc. and Tyson
`
`Poultry, Inc. are collectively referred to as “Tyson.” During the Conspiracy Period, Tyson, its
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`predecessors, subsidiaries, or affiliates sold Broilers in interstate commerce, directly or through
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`owned or controlled subsidiaries and affiliates, to purchasers in the United States.
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`27.
`
`Tyson reported a wide variety of data to Defendant Agri Stats including information
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`about its breeder flocks and hatchery capacity, and data for its complexes in Virginia, Pennsylvania,
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`North Carolina, Georgia, Alabama, Mississippi, Texas, Arkansas, Missouri, Indiana, Tennessee, and
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`Kentucky. Tyson was one of the ten Defendants that submitted false and artificially inflated price
`
`quotes to the Georgia Department of Agriculture (“GDA”). One of Tyson’s plant managers served
`
`on the Georgia Dock Advisory Board.
`
`(ii)
`
`Pilgrim’s Pride
`
`28.
`
`Defendant Pilgrim’s Pride Corporation (“Pilgrim’s Pride”) is a publicly held
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`Delaware corporation headquartered in Greeley, Colorado.
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`29.
`
`In December 2008, Pilgrim’s Pride filed a voluntary Chapter 11 petition in the
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`United States Bankruptcy Court for the Northern District of Texas. Effective December 28, 2009,
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`Pilgrim’s Pride was discharged from bankruptcy under a plan of reorganization that paid all
`
`creditors in full largely due to rising Broiler prices leading to increased profits at Pilgrim’s Pride.
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`7
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`30.
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`After its discharge from bankruptcy, Pilgrim’s Pride reaffirmed its participation in
`
`the Conspiracy.
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`31.
`
`Accordingly, Pilgrim’s Pride is liable for all conspiratorial acts undertaken during
`
`the entire Conspiracy Period.
`
`32.
`
`During the Conspiracy Period, Pilgrim’s Pride, its predecessors, subsidiaries, or
`
`affiliates sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries
`
`and affiliates, to purchasers in the United States.
`
`33.
`
`Pilgrim’s Pride reported a wide variety of data to Agri Stats, including information
`
`about its breeder flocks and hatchery capacity, and data for its complexes in Virginia, West
`
`Virginia, North Carolina, Georgia, Tennessee, Florida, South Carolina, Alabama, Texas, Arkansas,
`
`and Kentucky. Pilgrim’s Pride was one of the ten Defendants that submitted false and artificially
`
`inflated price quotes to the GDA. Pilgrim’s Pride’s Executive Vice President of Sales and
`
`Operations served on the Georgia Dock Advisory Board.
`
`(iii) Koch
`
`34.
`
`Defendant Koch Foods, Inc. is a privately held Delaware corporation headquartered
`
`in Park Ridge, Illinois.
`
`35.
`
`Defendant JCG Foods of Alabama, LLC is an Alabama limited liability corporation
`
`headquartered in Park Ridge, Illinois. JCG Foods of Alabama, LLC is a wholly-owned subsidiary
`
`of Defendant Koch Foods, Inc.
`
`36.
`
`Defendant JCG Foods of Georgia, LLC is a Georgia limited liability corporation
`
`headquartered in Park Ridge, Illinois. JCG Foods of Alabama, LLC is a wholly-owned subsidiary
`
`of Defendant Koch Foods, Inc.
`
`37.
`
`Defendant Koch Meat Co., Inc. is an Illinois corporation headquartered in Chicago.
`
`Koch Meat Co., Inc. is a wholly-owned subsidiary of Defendant Koch Foods, Inc.
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`8
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`38.
`
`Defendants Koch Foods, Inc., JCG Foods of Alabama, LLC, JCG Foods of Georgia,
`
`LLC and Koch Meat Co., Inc. are collectively referred to as “Koch.”
`
`39.
`
`During the Conspiracy Period, Koch, its predecessors, subsidiaries, or affiliates sold
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`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
`
`to purchasers in the United States.
`
`40.
`
`Koch reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and data for its complexes in Georgia, Tennessee, and
`
`Alabama. Koch, through JCG Foods of Georgia, LLC, was one of the ten Defendants that
`
`submitted false and artificially inflated price quotes to the GDA. Koch’s Vice-President of Sales
`
`served on the Georgia Dock Advisory Board.
`
`(iv)
`
`Sanderson Farms
`
`41.
`
`Defendant Sanderson Farms, Inc. is a publicly held Mississippi corporation
`
`headquartered in Laurel, Mississippi.
`
`42.
`
`Defendant Sanderson Farms, Inc. (Foods Division) is a Mississippi corporation
`
`headquartered in Laurel, Mississippi. Sanderson Farms, Inc. (Foods Division) is a wholly-owned
`
`subsidiary of Defendant Sanderson Farms, Inc.
`
`43.
`
`Defendant Sanderson Farms, Inc. (Production Division) is a Mississippi corporation
`
`headquartered in Laurel, Mississippi. Sanderson Farms, Inc. (Production Division) is a wholly-
`
`owned subsidiary of Defendant Sanderson Farms, Inc.
`
`44.
`
`Defendant Sanderson Farms, Inc. (Processing Division), a Mississippi corporation
`
`headquartered in Laurel, Mississippi. Sanderson Farms, Inc. (Processing Division) is a wholly-
`
`owned subsidiary of Defendant Sanderson Farms, Inc.
`
`45.
`
`Defendants Sanderson Farms, Inc., Sanderson Farms, Inc. (Foods Division),
`
`Sanderson Farms, Inc. (Production Division) and Sanderson Farms, Inc. (Processing Division) are
`
`9
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`collectively referred to as “Sanderson Farms.” During the Conspiracy Period, Sanderson Farms, its
`
`predecessors, subsidiaries, or affiliates sold Broilers in interstate commerce, directly or through
`
`owned or controlled subsidiaries and affiliates, to purchasers in the United States.
`
`46.
`
`Sanderson reported a wide variety of data to Agri Stats, including information about
`
`its breeder flocks and hatchery capacity, and data for its complexes in Georgia, Mississippi, and
`
`Texas. Sanderson Farms was one of the ten Defendants that submitted false and artificially inflated
`
`price quotes to the GDA.
`
`(v)
`
`Raeford
`
`47.
`
`Defendant House of Raeford Farms, Inc. (“Raeford”) is a privately held North
`
`Carolina corporation headquartered in Rose Hill, North Carolina.
`
`48.
`
`During the Conspiracy Period, Raeford, its predecessors, subsidiaries, or affiliates
`
`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`49.
`
`Raeford reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and data for its North Carolina and Louisiana complexes.
`
`(vi) Mar-Jac
`
`50.
`
`Defendant Mar-Jac Poultry, Inc. is a Georgia corporation headquartered in
`
`Gainesville, Georgia. Mar-Jac Poultry, Inc. and its subsidiaries are controlled by Sterling
`
`Management Group, Inc.
`
`51. Mar-Jac Poultry MS, LLC is a Mississippi limited liability company located in
`
`Gainesville, Georgia.
`
`52. Mar-Jac Poultry AL, LLC is an Alabama limited liability company located in
`
`Gainesville, Georgia.
`
`53. Mar-Jac AL/MS, Inc. is a Delaware corporation located in Gainesville, Georgia.
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`10
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`54. Mar-Jac Poultry, LLC is a Delaware limited liability company located in Gainesville,
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`Georgia.
`
`55. Mar-Jac Holdings, Inc. is a Delaware corporation located in Gainesville, Georgia and
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`is the parent company of Mar-Jac Poultry, Inc., Mar-Jac Poultry MS, LLC, Mar-Jac Poultry AL,
`
`LLC, Mar-Jac AL/MS, Inc., and Mar-Jac Poultry, LLC (collectively, “Mar-Jac”).
`
`56.
`
`During the Conspiracy Period, Mar-Jac, its predecessors, subsidiaries, or affiliates
`
`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`57. Mar-Jac reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and data for its Gainesville, Georgia complex. Mar-Jac was
`
`one of the ten Defendants that submitted false and artificially inflated price quotes to the GDA.
`
`Mar-Jac’s Vice President of Operations served on the Georgia Dock Advisory Board.
`
`(vii) Perdue
`
`58.
`
`Defendant Perdue Farms Inc. is a privately held Maryland corporation headquartered
`
`in Salisbury, Maryland.
`
`59.
`
`Defendant Perdue Foods LLC, formerly known as Perdue Farms LLC, is a privately
`
`held Maryland limited liability corporation headquartered in Salisbury, Maryland. Perdue Foods
`
`LLC is a subsidiary of Defendant Perdue Farms Inc.
`
`60.
`
`Defendants Perdue Farms Inc. and Perdue Foods LLC are together referred to as
`
`“Perdue.” During the Conspiracy Period, Perdue, its predecessors, subsidiaries, or affiliates sold
`
`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
`
`to purchasers in the United States.
`
`61.
`
`Perdue reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and data for its complexes in Delaware, Maryland, North
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`11
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`Carolina, South Carolina, Florida, and Kentucky. Perdue was one of the ten Defendants that
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`submitted false and artificially inflated price quotes to the GDA.
`
`(viii) Wayne Farms
`
`62.
`
`Defendant Wayne Farms, LLC (“Wayne Farms”) is a Delaware limited liability
`
`corporation headquartered in Oakwood, Georgia.
`
`63.
`
`During the Conspiracy Period, Wayne Farms, its predecessors, subsidiaries, or
`
`affiliates sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries
`
`and affiliates, to purchasers in the United States.
`
`64. Wayne Farms reported a wide variety of data to Agri Stats, including information
`
`about its breeder flocks and hatchery capacity, and data for its complexes in North Carolina,
`
`Georgia, Alabama, Mississippi, and Arkansas. Wayne Farms was one of the ten Defendants that
`
`submitted false and artificially inflated price quotes to the GDA. Its Vice President of Fresh Sales
`
`served on the Georgia Dock Advisory Board.
`
`(ix)
`
`Fieldale
`
`65.
`
`Defendant Fieldale Farms Corporation (“Fieldale”) is a privately held Georgia
`
`corporation headquartered in Baldwin, Georgia.
`
`66.
`
`During the Conspiracy Period, Fieldale, its predecessors, subsidiaries, or affiliates,
`
`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`67.
`
`Fieldale reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and its Gainesville, Georgia complex. Fieldale was one of the
`
`ten Defendants that submitted false and artificially inflated price quotes to the GDA. Its owner and
`
`CEO also served on the Georgia Dock Advisory Board.
`
`(x)
`
`George’s
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`12
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`
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`Case: 1:20-cv-03450 Document #: 1 Filed: 06/12/20 Page 14 of 125 PageID #:14
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`
`
`68.
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`Defendant George’s Inc. is a privately held Arkansas corporation headquartered in
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`Springdale, Arkansas.
`
`69.
`
`Defendant George’s Farms, Inc., is a privately held Arkansas corporation
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`headquartered in Springdale, Arkansas. George’s Farms, Inc. is a wholly-owned subsidiary of
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`George’s, Inc.
`
`70.
`
`Defendants George’s, Inc. and George’s Farms, Inc. are together referred to as
`
`“George’s.” During the Conspiracy Period, George’s, its predecessors, subsidiaries, or affiliates
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`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`71.
`
`George’s reported a wide variety of data to Agri Stats, including information about
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`its breeder flocks and hatchery capacity, and data for its complexes in Harrisonburg, Virginia and
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`Springdale, Arkansas.
`
`(xi)
`
`Simmons
`
`72.
`
`Defendant Simmons Foods, Inc.
`
`is a privately held Arkansas corporation
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`headquartered in Siloam Springs, Arkansas. Simmons Foods reported a wide variety of data to Agri
`
`Stats, including information about its breeder flocks and hatchery capacity, and data for its two
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`Siloam Springs, Arkansas complexes.
`
`73.
`
`Defendant Simmons Prepared Foods, Inc. is a privately held Arkansas company
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`headquartered in Siloam Springs, Arkansas. Simmons Prepared Foods, Inc. is a wholly-owned
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`subsidiary of Simmons Foods, Inc.
`
`74.
`
`During the Conspiracy Period, Simmons Foods, Inc. exclusively sold the Broilers it
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`produced to Simmons Prepared Foods, Inc., which in turn resold the Broilers in various forms to its
`
`customers. Simmons Foods, Inc., its predecessors, subsidiaries, or affiliates was engaged in the
`
`processing, distribution, sale, pricing, and/or marketing of Broilers, directly or through its owned or
`
`13
`
`
`
`Case: 1:20-cv-03450 Document #: 1 Filed: 06/12/20 Page 15 of 125 PageID #:15
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`
`
`controlled subsidiaries and affiliates, to purchasers in the United States. Defendants Simmons
`
`Foods, Inc. and Simmons Prepared Foods, Inc. are collectively referred to as “Simmons.”
`
`(xii) O.K. Foods
`
`75.
`
`Defendant O.K. Foods, Inc. is an Arkansas corporation headquartered in Fort Smith,
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`Arkansas.
`
`76.
`
`O.K. Farms, Inc. is an Arkansas corporation headquartered in Fort Smith, Arkansas.
`
`O.K. Farms, Inc. is a wholly-owned subsidiary of Defendant O.K. Foods, Inc.
`
`77.
`
`O.K. Industries, Inc. is an Arkansas corporation headquartered in Fort Smith,
`
`Arkansas. O.K. Industries, Inc. is a wholly-owned subsidiary of Defendant O.K. Foods, Inc.
`
`78.
`
`Defendants O.K. Foods, Inc., O.K. Farms, Inc. and O.K. Industries, Inc. are
`
`collectively referred to collectively as “O.K. Foods.” During the Conspiracy Period, O.K. Foods, its
`
`predecessors, subsidiaries, or affiliates sold Broilers in interstate commerce, directly or through
`
`owned or controlled subsidiaries and affiliates, to purchasers in the United States.
`
`79.
`
`The O.K. Foods entities are subsidiaries of the Mexican poultry conglomerate
`
`Industrias Bachoco. O.K. Foods reported a wide variety of data to Agri Stats, including information
`
`about its breeder flocks and hatchery capacity, and data for its Fort Smith, Arkansas complex.
`
`(xiii) Peco Foods
`
`80.
`
`Defendant Peco Foods, Inc. (“Peco Foods”) is a privately held Alabama corporation
`
`headquartered in Tuscaloosa, Alabama.
`
`81.
`
`During the Conspiracy Period, Peco Foods, its predecessors, subsidiaries, or
`
`affiliates sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries
`
`and affiliates, to purchasers in the United States.
`
`82.
`
`Peco Foods reported a wide variety of data to Agri Stats, including information about
`
`its breeder flocks and hatchery capacity, and data for its complexes in Gordo, Alabama and
`
`14
`
`
`
`Case: 1:20-cv-03450 Document #: 1 Filed: 06/12/20 Page 16 of 125 PageID #:16
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`
`
`Sebastopol, Louisiana.
`
`(xiv) Harrison
`
`83.
`
`Defendant Harrison Poultry,
`
`Inc.
`
`(“Harrison”)
`
`is a Georgia corporation
`
`headquartered in Bethlehem, Georgia.
`
`84.
`
`During the Conspiracy Period, Harrison, its predecessors, subsidiaries, or affiliates
`
`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`85.
`
`Harrison reported a wide variety of data to Agri Stats, including information about
`
`its breeder flocks and hatchery capacity, and data for its Bethlehem, Georgia complex. Harrison
`
`was one of the ten Defendants that submitted false and artificially inflated price quotes to the GDA.
`
`Harrison’s owner and CEO served on the Georgia Dock Advisory Board.
`
`(xv) Foster Farms
`
`86.
`
`Defendant Foster Farms, LLC
`
`is a privately held California corporation
`
`headquartered in Modesto, California. Foster reported a wide variety of data to Agri Stats, including
`
`information about its breeder flocks and hatchery capacity, and data for its complexes in Fresno,
`
`California, Livingston, California, and the Pacific Northwest.
`
`87.
`
`Defendant Foster Poultry Farms is a privately held California corporation
`
`headquartered in Livingston, California. Foster Poultry Farms is a related entity of Foster Farms,
`
`LLC.
`
`88.
`
`Defendants Foster Farms, LLC and Foster Poultry Farms are collectively referred to
`
`as “Foster Farms.” During the Conspiracy Period, Foster Farms, its predecessors, subsidiaries, or
`
`affiliates sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries
`
`and affiliates, to purchasers in the United States.
`
`(xvi) Claxton
`
`15
`
`
`
`Case: 1:20-cv-03450 Document #: 1 Filed: 06/12/20 Page 17 of 125 PageID #:17
`
`
`
`89.
`
`Defendant Norman W. Fries, Inc. d/b/a Claxton Poultry Farms, Inc. (“Claxton”) is a
`
`Georgia corporation headquartered in Claxton, Georgia.
`
`90.
`
`During the Conspiracy Period, Claxton, its predecessors, subsidiaries, or affiliates
`
`sold Broilers in interstate commerce, directly or through owned or controlled subsidiaries and
`
`affiliates, to purchasers in the United States.
`
`91.
`
`Claxton reported to Agri Stats a wide variety of data, including information about its
`
`breeder flocks and hatchery capacity and its Claxton, Georgia complex. Claxton was one of the ten
`
`Defendants that submitted false and artificially inflated price quotes to the GDA. Its CEO served on
`
`the Georgia Dock Advisory Board.
`
`(xvii) Mountaire Farms
`
`92.
`
`Defendant Mountaire Farms, Inc. is a privately held Delaware corporation
`
`headquartered in Millsboro, Delaware.
`
`93.
`
`Defendant Mountaire Farms, LLC is a privately held Arkansas limited liability
`
`corporation headquartered in Little Rock, Arkansas. Mountaire Farms, LLC is a wholly-owned
`
`subsidiary of Defendant Mountaire Farms, Inc.
`
`94.
`
`Defendant Mountaire Farms of Delaware, Inc. is a privately held Delaware
`
`corporation headquartered in Millsboro, Delaware. Mountaire Farms of Delaware is a wholly-
`
`owned subsidiary of Defendant Mountaire Farms, Inc.
`
`95.
`
`Defendants Mountaire Farms, Inc., Mountaire Farms, LLC and Mountaire Farms of
`
`Delaware, Inc. are collectively referred to as “Mountaire Farms.” During the Conspiracy Period,
`
`Mountaire Farms, its predecessors, subsidiaries, or affiliates sol