Former Growers Take Pilgrim’s Pride to Federal Court

LONGVIEW � Pilgrim’s Pride is headed to court Thursday in a federal lawsuit filed by former chicken growers. The lawsuit is a combination of two 2009 complaints filed by the city of Clinton, Ark., and Shelia and James Adams, who own or have owned 368 poultry farms in Arkansas, Oklahoma, Louisiana and Texas, including in Nacogdoches and Mount Pleasant. According to KETK and the Longview News-Journal, the lawsuits were originally filed in federal bankruptcy court, but a Fort Worth federal court consolidated the cases and moved the venue to Marshall.

The lawsuits allege Pilgrim’s violated the Packers and Stockers Act through its plan to manipulate the price of chicken, its creation of an insider system of advantages and its retaliation for and termination of growers who refused to continually make capital investments in their facilities. Pilgrim’s denies the allegations. Formerly headquartered in Pittsburg, Pilgrim�s Pride filed bankruptcy in 2008. It emerged from bankruptcy in late 2009 after selling a majority stake to Brazilian meat producer JBS USA. Company headquarters was moved from East Texas to Greeley, Colo., in 2010.