Washington state suing chicken producers over alleged plot to inflate prices

Washington State Attorney General Bob Ferguson (D) announced on Tuesday that he has filed a lawsuit against 19 chicken producers, accusing them of taking part in an illegal conspiracy to inflate their prices.

The companies Ferguson named in his suit account for nearly all the chicken produced for their meat in the U.S. and around 90 percent of consumers in Washington state buy products from these companies, according to a release from the attorney general’s office.

“If you’ve eaten chicken in the last decade, this conspiracy touched your wallet,” said Ferguson. “This conspiracy cost middle-class and low-income Washington families more money to put food on their table. I will hold these companies accountable for the profits they illegally made off the backs of hardworking Washington families.”

The companies named in Ferguson’s lawsuit include Tyson Foods, Perdue Farms, Koch Foods, Sanderson Farms and Amick Farms.

He is accusing these companies of violating the Washington Consumer Protection Act as well as antitrust laws in the state. Ferguson alleges that these companies did so through a coordinated effort to reduce production from 2008-2009 and again from 2011-2012. These actions allegedly resulted in “significant production cuts and higher prices.”

The attorney general pointed to internal communication from the Pilgrim’s Pride food production company that appeared to nod to these illicit practices. One executive allegedly said the communication they had had with a competitor was “not exactly a legal conversation.”

“I received a call today from a friendly competitor telling me it’s all over the market that Pilgrim’s is taking contract pricing up,” a Pilgrim employee allegedly wrote. “They thanked us for taking the lead and told me that contrary to what we might hear regarding their company, they are following as are others. Courage … keep it up guys.”

Ferguson is seeking millions of dollars in restitution from the companies on behalf of Washington state residents.

The Hill has reached out to companies named in the lawsuit for comment.

Perdue Farms declined to comment when reached by The Hill, saying it “cannot comment on pending litigation.”