Pilgrim's Pride Corp, one of the world's largest chicken producers, persuaded a federal appeals court to overturn a damages award of more than $25 million to several dozen contract poultry growers that accused it of violating antitrust law by trying to manipulate poultry prices.
A panel of the 5th U.S. Circuit Court of Appeals in New Orleans said on Tuesday a federal magistrate judge erred in finding that Pilgrim's Pride's decision to idle a chicken processing plant in El Dorado, Arkansas, in May 2009 and end contracts with the growers was motivated by a desire to control prices.
The two-judge panel said the closure was "neither illegitimate nor anti-competitive" given that Pilgrim's Pride had been driving down prices by producing too much, and "wisely" decided to stop flooding the market with unprofitable chicken.
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