Food suppliers US Foods in addition to also Sysco have initiated separate lawsuits accusing numerous large poultry suppliers of colluding to manipulate wholesale chicken prices, The Wall Street Journal reported Wednesday.
The two companies, which are the largest food suppliers to U.S. restaurants from the country, alleged which the poultry processors, including Tyson Foods, Pilgrim’s Pride in addition to also Sanderson Farms, have artificially limited supplies in addition to also inflated prices for years, according to the report.
At the lows, shares of Tyson Foods fell as much as 5 percent on Wednesday. Pilgrim’s Pride traded as low as 6 percent, while Sanderson Farms declined as much as 4 percent. Those stocks were last seen edging off their lows.
“Complaints like these are common in antitrust litigation,” a Tyson Foods spokesman told CNBC. “Such complaints do not change our position which the claims are unfounded. We will continue to vigorously defend our company.”
US Foods, Sysco, Pilgrim’s Pride in addition to also Sanderson Farms did not immediately respond to CNBC’s requests for comment.
which is actually breaking news. Please check back for updates.
Read the full report by The Wall Street Journal.