throbber
Case: 1:20-cv-03458 Document #: 1 Filed: 06/12/20 Page 1 of 84 PageID #:1
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`UNITED STATES DISTRICT COURT
`NORTHERN DISTRICT OF ILLINOIS
`EASTERN DIVISION
`
`
`FIC RESTAURANTS, INC.,
`
`
`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 FIC Restaurants, Inc. (“Friendly’s”), brings this action for damages under the
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`antitrust laws of the United States against 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 Prepared Foods, Inc.; O.K. Foods, Inc.; O.K. Farms, Inc.; O.K. Industries, Inc.;
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`Peco Foods, Inc.; Harrison Poultry, Inc.; Foster Farms, LLC; Foster Poultry Farms; Norman W. Fries,
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`Inc. d/b/a Claxton Poultry Farms, Inc.; Mountaire Farms, Inc.; Mountaire Farms, LLC; Mountaire
`
`Farms of Delaware, Inc.; Amick Farms, LLC; The Amick Company, Inc.; Amick-OSI Broilers, LLC;
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`Amick-OSI Processing, LLC; Case Foods, Inc.; Case Farms, LLC; Case Farms Processing, Inc.; and
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`Agri Stats, Inc. (collectively, the “Defendants”), and alleges:
`
`I.
`
`INTRODUCTION
`
`1.
`
`Defendants are horizontal competitors in the United States chicken market.
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`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.
`
`2.
`
`Chickens raised for meat consumption (“Broilers” or “Broiler”)1 constitute
`
`
`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.
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`
`
`

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`approximately 98% of all chicken meat sold in the United States. Defendants are the leading suppliers
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`of Broilers and control approximately 90% of the wholesale Broiler market. The Broiler industry is
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`a highly concentrated market with over $30 billion in annual wholesale revenue.
`
`3.
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`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,
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`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 January
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`2008 and continuing throughout the Conspiracy Period—Defendants conspired to curtail competition
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`in the market for Broilers by reducing the supply of Broilers, manipulating the price indices for
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`wholesale Broilers, and fixing prices and rigging bids for Small Bird Broilers2 sold to Friendly’s and
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`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. Defendants
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`purposefully destroyed breeder hens and eggs to achieve these artificial decreases in Broiler supply.
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`Defendants also manipulated the price indices associated with wholesale Broiler prices at the end of
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`the distribution chain. Defendants’ conduct ensured that buyers purchased Broilers from Defendants
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`at inflated non-competitive prices.
`
`
`2 Generally, Small Birds are defined as birds slaughtered between 7 and 9 weeks, weighing less than
`4 and 1/4 pounds.
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`2
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`

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`6.
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`In furtherance of the Conspiracy, Defendants reached anti-competitive agreements and
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`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-competitive
`
`ends by exchanging confidential and commercially sensitive information regarding production,
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`capacity, and pricing of Broilers. As part of this strategy, Defendants exchanged information
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`regarding anticipated future production through Defendant Agri Stats, Inc. (“Agri Stats”). Defendants
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`used this data to coordinate production outputs, monitor each other’s production figures for Broilers,
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`and otherwise facilitate the Conspiracy.
`
`8.
`
`Defendants also engaged in a conspiracy targeted at restaurants like Friendly’s that
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`purchased Small Bird Broilers (“Small Bird Conspiracy”). Friendly’s, like many restaurants,
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`contracted directly with Defendants for the purchase of their proprietary chicken products. Friendly’s
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`submitted requests for bids to multiple Defendants to supply the Friendly’s system with Small Bird
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`Broilers.
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`9.
`
`Starting as early as 2012 and continuing until as late as 2017 (“Small Bird Conspiracy
`
`Period”), Defendants conspired to fix prices and submit artificially high bids to Friendly’s and other
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`restaurants in an effort to drive up Small Bird Broiler prices, and in turn, 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 Friendly’s and other restaurants at the
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`same time wholesale prices of Small Bird Broilers were decreasing.
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`11.
`
`Defendants adhered to their collusive agreements and understandings throughout the
`
`Conspiracy Period. Defendants reaped the benefits of their illegal conduct through their production
`
`and sale—directly and through their wholly-owned or controlled subsidiaries and affiliates—of
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`3
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`

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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
`
`benefits of increased competition. Defendants’ conduct resulted in their customers, including
`
`Friendly’s, paying 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 Friendly’s was revealed.
`
`14.
`
`“Plus factors” are economic actions and outcomes, above and beyond parallel conduct
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`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 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 independent self-interest; (iv) increased
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`exports of Broilers to other countries that were also often against independent self-interest; (v)
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`multiple industry characteristics that facilitated collusion, such as high vertical integration, high
`
`barriers to entry, high industry consolidation and concentration, inelastic supply and demand, a lack
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`of significant substitutes for chicken, depressed economic conditions, and a history of government
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`investigations and collusive conduct; and (vii) the manipulation of the Georgia Dock price index.
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`4
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`

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`
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`II. PARTIES
`
`A.
`
`Plaintiff
`
`15.
`
`FIC Restaurants, Inc. is a Delaware corporation with its principal place of business in
`
`Wilbraham, Massachusetts. During the Conspiracy Period, Friendly’s operated over 150 restaurants
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`in multiple states.
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`16.
`
`During the Conspiracy Period, Friendly’s purchased Broilers directly from
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`Defendants, Defendants’ subsidiaries and affiliates, entities owned or controlled by Defendants, or
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`agents Defendants or Defendants’ subsidiaries and affiliates controlled.
`
`17.
`
`Friendly’s purchased millions of dollars worth of Broilers directly from Defendants at
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`artificially inflated prices throughout the Conspiracy Period. Friendly’s contracted directly with
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`Defendants for the purchase of Broilers, negotiating the price and quantity at which Defendants would
`
`supply Friendly’s restaurants with Broilers. As such, Friendly’s has suffered antitrust injury as a
`
`result of Defendants’ anticompetitive and unlawful conduct.
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`18.
`
`Friendly’s was damaged by Defendants’ anticompetitive and illegal conduct by paying
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`artificially inflated prices for Broilers. Friendly’s brings this action to recover the overcharges it paid
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`for Broilers purchased during the Conspiracy Period.
`
`B.
`
`(i)
`
`Defendants
`
`Tyson
`
`19.
`
`Defendant Tyson Foods, Inc. is a publicly held Delaware corporation headquartered
`
`in Springdale, Arkansas.
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`20.
`
`Defendant Tyson Chicken, Inc. is a Delaware corporation headquartered in
`
`Springdale, Arkansas. Tyson Chicken, Inc. is a wholly-owned subsidiary of Defendant Tyson Foods,
`
`Inc.
`
`21.
`
`Defendant Tyson Breeders, Inc. is a Delaware corporation headquartered in
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`5
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`Springdale, Arkansas. Tyson Breeders, Inc. is a wholly-owned subsidiary of Defendant Tyson Foods,
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`Inc.
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`22.
`
`Defendant Tyson Poultry, Inc. is a Delaware corporation headquartered in Springdale,
`
`Arkansas. Tyson Poultry, Inc. is a wholly-owned subsidiary of Defendant Tyson Foods, Inc.
`
`23.
`
`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
`
`predecessors, subsidiaries, or affiliates sold Broilers in interstate commerce, directly or through
`
`owned or controlled subsidiaries and affiliates, to purchasers in the United States.
`
`24.
`
`Tyson reported a wide variety of data to Defendant Agri Stats including information
`
`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
`
`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
`
`25.
`
`Defendant Pilgrim’s Pride Corporation (“Pilgrim’s Pride”) is a publicly held Delaware
`
`corporation headquartered in Greeley, Colorado.
`
`26.
`
`In December 2008, Pilgrim’s Pride filed a voluntary Chapter 11 petition in the United
`
`States Bankruptcy Court for the Northern District of Texas. Effective December 28, 2009, 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.
`
`27.
`
`After its discharge from bankruptcy, Pilgrim’s Pride reaffirmed its participation in the
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`Conspiracy.
`
`28.
`
`Accordingly, Pilgrim’s Pride is liable for all conspiratorial acts undertaken during the
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`6
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`

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`entire Conspiracy Period.
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`29.
`
`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.
`
`30.
`
`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,
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`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
`
`31.
`
`Defendant Koch Foods, Inc. is a privately held Delaware corporation headquartered
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`in Park Ridge, Illinois.
`
`32.
`
`Defendant JCG Foods of Alabama, LLC is an Alabama limited liability corporation
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`headquartered in Park Ridge, Illinois. JCG Foods of Alabama, LLC is a wholly-owned subsidiary of
`
`Defendant Koch Foods, Inc.
`
`33.
`
`Defendant JCG Foods of Georgia, LLC is a Georgia limited liability corporation
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`headquartered in Park Ridge, Illinois. JCG Foods of Alabama, LLC is a wholly-owned subsidiary of
`
`Defendant Koch Foods, Inc.
`
`34.
`
`Defendant Koch Meat Co., Inc. is an Illinois corporation headquartered in Chicago.
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`Koch Meat Co., Inc. is a wholly-owned subsidiary of Defendant Koch Foods, Inc.
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`35.
`
`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.”
`
`36.
`
`During the Conspiracy Period, Koch, its predecessors, subsidiaries, or affiliates sold
`
`7
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`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
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`to purchasers in the United States.
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`37.
`
`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
`
`38.
`
`Defendant Sanderson Farms, Inc. is a publicly held Mississippi corporation
`
`headquartered in Laurel, Mississippi.
`
`39.
`
`Defendant Sanderson Farms, Inc. (Foods Division) is a Mississippi corporation
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`headquartered in Laurel, Mississippi. Sanderson Farms, Inc. (Foods Division) is a wholly-owned
`
`subsidiary of Defendant Sanderson Farms, Inc.
`
`40.
`
`Defendant Sanderson Farms, Inc. (Production Division) is a Mississippi corporation
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`headquartered in Laurel, Mississippi. Sanderson Farms, Inc. (Production Division) is a wholly-owned
`
`subsidiary of Defendant Sanderson Farms, Inc.
`
`41.
`
`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.
`
`42.
`
`Defendants Sanderson Farms, Inc., Sanderson Farms, Inc. (Foods Division),
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`Sanderson Farms, Inc. (Production Division) and Sanderson Farms, Inc. (Processing Division) are
`
`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.
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`8
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`

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`43.
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`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
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`Texas. Sanderson Farms was one of the ten Defendants that submitted false and artificially inflated
`
`price quotes to the GDA.
`
`(v)
`
`Raeford
`
`44.
`
`Defendant House of Raeford Farms, Inc. (“Raeford”) is a privately held North
`
`Carolina corporation headquartered in Rose Hill, North Carolina.
`
`45.
`
`During the Conspiracy Period, Raeford, its predecessors, subsidiaries, or affiliates sold
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`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
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`to purchasers in the United States.
`
`46.
`
`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
`
`47.
`
`Defendant Mar-Jac Poultry, Inc. is a Georgia corporation headquartered in
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`Gainesville, Georgia. Mar-Jac Poultry, Inc. and its subsidiaries are controlled by Sterling
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`Management Group, Inc.
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`48. Mar-Jac Poultry MS, LLC is a Mississippi limited liability company located in
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`Gainesville, Georgia.
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`49. Mar-Jac Poultry AL, LLC is an Alabama limited liability company located in
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`Gainesville, Georgia.
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`50. Mar-Jac AL/MS, Inc. is a Delaware corporation located in Gainesville, Georgia.
`
`51. Mar-Jac Poultry, LLC is a Delaware limited liability company located in Gainesville,
`
`Georgia.
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`52. Mar-Jac Holdings, Inc. is a Delaware corporation located in Gainesville, Georgia and
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`9
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`is the parent company of Mar-Jac Poultry, Inc., Mar-Jac Poultry MS, LLC, Mar-Jac Poultry AL, LLC,
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`Mar-Jac AL/MS, Inc., and Mar-Jac Poultry, LLC (collectively, “Mar-Jac”).
`
`53.
`
`During the Conspiracy Period, Mar-Jac, 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.
`
`54. 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-
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`Jac’s Vice President of Operations served on the Georgia Dock Advisory Board.
`
`(vii) Perdue
`
`55.
`
`Defendant Perdue Farms Inc. is a privately held Maryland corporation headquartered
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`in Salisbury, Maryland.
`
`56.
`
`Defendant Perdue Foods LLC, formerly known as Perdue Farms LLC, is a privately
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`held Maryland limited liability corporation headquartered in Salisbury, Maryland. Perdue Foods LLC
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`is a subsidiary of Defendant Perdue Farms Inc.
`
`57.
`
`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
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`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
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`to purchasers in the United States.
`
`58.
`
`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
`
`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.
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`(viii) Wayne Farms
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`10
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`59.
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`Defendant Wayne Farms, LLC (“Wayne Farms”) is a Delaware limited liability
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`corporation headquartered in Oakwood, Georgia.
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`60.
`
`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.
`
`61. 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,
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`Alabama, Mississippi, and Arkansas. Wayne Farms was one of the ten Defendants that submitted
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`false and artificially inflated price quotes to the GDA. Its Vice President of Fresh Sales served on the
`
`Georgia Dock Advisory Board.
`
`(ix)
`
`Fieldale
`
`62.
`
`Defendant Fieldale Farms Corporation (“Fieldale”) is a privately held Georgia
`
`corporation headquartered in Baldwin, Georgia.
`
`63.
`
`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.
`
`64.
`
`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
`
`65.
`
`Defendant George’s Inc. is a privately held Arkansas corporation headquartered in
`
`Springdale, Arkansas.
`
`66.
`
`Defendant George’s Farms, Inc., is a privately held Arkansas corporation
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`11
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`headquartered in Springdale, Arkansas. George’s Farms, Inc. is a wholly-owned subsidiary of
`
`George’s, Inc.
`
`67.
`
`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 sold
`
`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
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`to purchasers in the United States.
`
`68.
`
`George’s reported a wide variety of data to Agri Stats, including information about its
`
`breeder flocks and hatchery capacity, and data for its complexes in Harrisonburg, Virginia and
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`Springdale, Arkansas.
`
`(xi)
`
`Simmons
`
`69.
`
`Defendant Simmons Foods, Inc.
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`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 Siloam
`
`Springs, Arkansas complexes.
`
`70.
`
`Defendant Simmons Prepared Foods, Inc. is a privately held Arkansas company
`
`headquartered in Siloam Springs, Arkansas. Simmons Prepared Foods, Inc. is a wholly-owned
`
`subsidiary of Simmons Foods, Inc.
`
`71.
`
`During the Conspiracy Period, Simmons Foods, Inc. exclusively sold the Broilers it
`
`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
`
`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
`
`12
`
`

`

`Case: 1:20-cv-03458 Document #: 1 Filed: 06/12/20 Page 14 of 84 PageID #:14
`
`
`
`72.
`
`Defendant O.K. Foods, Inc. is an Arkansas corporation headquartered in Fort Smith,
`
`Arkansas.
`
`73.
`
`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.
`
`74.
`
`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.
`
`75.
`
`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.
`
`76.
`
`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
`
`77.
`
`Defendant Peco Foods, Inc. (“Peco Foods”) is a privately held Alabama corporation
`
`headquartered in Tuscaloosa, Alabama.
`
`78.
`
`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.
`
`79.
`
`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
`
`Sebastopol, Louisiana.
`
`(xiv) Harrison
`
`80.
`
`Defendant Harrison Poultry, Inc. (“Harrison”) is a Georgia corporation headquartered
`
`13
`
`

`

`Case: 1:20-cv-03458 Document #: 1 Filed: 06/12/20 Page 15 of 84 PageID #:15
`
`
`
`in Bethlehem, Georgia.
`
`81.
`
`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.
`
`82.
`
`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
`
`83.
`
`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.
`
`84.
`
`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.
`
`85.
`
`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
`
`86.
`
`Defendant Norman W. Fries, Inc. d/b/a Claxton Poultry Farms, Inc. (“Claxton”) is a
`
`Georgia corporation headquartered in Claxton, Georgia.
`
`87.
`
`During the Conspiracy Period, Claxton, its predecessors, subsidiaries, or affiliates sold
`
`14
`
`

`

`Case: 1:20-cv-03458 Document #: 1 Filed: 06/12/20 Page 16 of 84 PageID #:16
`
`
`
`Broilers in interstate commerce, directly or through owned or controlled subsidiaries and affiliates,
`
`to purchasers in the United States.
`
`88.
`
`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
`
`89.
`
`Defendant Mountaire Farms, Inc. is a privately held Delaware corporation
`
`headquartered in Millsboro, Delaware.
`
`90.
`
`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.
`
`91.
`
`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.
`
`92.
`
`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 sold Broilers in interstate commerce,
`
`directly or through owned or controlled subsidiaries and affiliates, to purchasers in the United States.
`
`93. Mountaire 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 Delaware and North
`
`Carolina.
`
`(xviii) Amick
`
`94.
`
`Defendant Amick Farms, LLC is a privately held Delaware limited liability company
`
`15
`
`

`

`Case: 1:20-cv-03458 Document #: 1 Filed: 06/12/20 Page 17 of 84 PageID #:17
`
`
`
`with its corporate headquarters in Batesburg-Leesville, South Carolina, and with facilities in South
`
`Carolina, Maryland and Delaware. Amick Farms, LLC is a wholly-owned subsidiary of OSI Group,
`
`LLC, a privately held Delaware corporation with its corporate headquarters in Aurora, Illinois.
`
`During the Conspiracy Period, Amick Farms, LLC, 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.
`
`95.
`
`Defendant The Amick Company, Inc. is a privately held South Carolina corporation
`
`with its corporate headquarters in Batesburg-Leesville, South Carolina, and is a wholly-owned
`
`subsidiary of OSI Group, LLC. During the Conspiracy Period, The Amick Company, Inc., 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
`
`96.
`
`Defendant Amick-OSI Broilers, LLC is a privately held Delaware limited liability
`
`company with its corporate headquarters in Batesburg-Leesville, South Carolina, and is a wholly-
`
`owned subsidiary of OSI Group, LLC. During the Conspiracy Period, Amick-OSI Broilers, LLC, 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
`
`97.
`
`Defendant Amick-OSI Processing, LLC is a privately held Delaware limited liability
`
`company with its corporate headquarters in Batesburg-Leesville, South Carolina,

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