Jury Finds Poultry Executives Not Guilty In Price Fixing Lawsuit

O'Melveny law firm news release

After three lengthy trials-including two mistrials as a result of hung juries-five chicken industry executives have been found not guilty of federal price-fixing charges, in what observers have called "the criminal antitrust trial of the year."

Late Thursday, jurors acquitted all five defendants in Denver federal court: Pilgrim's Pride retired CEO Bill Lovette and his successor Jayson Penn, Pilgrim's sales executive Roger Austin, Claxton Poultry President Mikell Fries and Claxton sales executive Scott Brady.

In 2020, the DOJ originally charged ten individuals from five of the largest poultry producers in the country with a sprawling conspiracy to rig bids and fix prices of broiler chickens. In December 2021, after a seven-week trial, the jury failed to reach a verdict as to any of the defendants-and the DOJ retried the case.

In April 2022, after a five-week trial, hearing testimony from 34 witnesses and reviewing more than 600 trial exhibits, the jury hung again. Not a single defendant was convicted and the court declared a mistrial. Despite media reports calling the result a "black eye" for the government, the DOJ announced that it would try the case for a third time. Chief Judge Brimmer then ordered the Assistant Attorney General of the Antitrust Division to appear in his court within a week to "look him in the eye" and explain in open court why a third trial would be consistent with the Justice Manual's admonition that prosecutors should only pursue cases they believe will result in a conviction.

The DOJ dismissed the charges against five of the defendants, but insisted on proceeding with an unprecedented third trial against the five remaining defendants.

The astonishing third trial began in June 2022. And now, after a day and a half of deliberations, the jury in this history-making case has vindicated the five remaining executives.

The O'Melveny team representing former Pilgrim's Pride CEO Jayson Penn was led by partners Michael Tubach and Anna Pletcher, counsel Brian Quinn, Scott Schaeffer, Kelse Moen, and associates Meg Tomlinson, Enoch Ajayi, John Gonzalez, Alex Trabolsi, Melissa Cassel, Chris Philips, and Khadija Syed.

"The DOJ never should have brought these charges. We are proud to have zealously defended Jayson Penn. And while this result is a long time coming, we are thrilled with the outcome of this unprecedented and unnecessary third trial," said Tubach.

"Notwithstanding the high burden of proof, the DOJ typically comes to federal court with the cards stacked in its favor. And the challenge is even greater with retrials, which notoriously favor the government. This group of defense attorneys fought the odds - three times - and won," added Pletcher.

The additional defendants in the case were represented by teams from Recht Kornfeld PC, Troutman Pepper, Reichman Jorgensen Lehman & Feldberg LLP, Harris St. Laurent, Moore & Van Allen PLLC, and Eytan Nielsen LLC.

"Trials involve countless strategic and procedural decisions that are difficult enough to make in a single-defendant case, let alone a case with five or ten defendants. These lawyers put their egos aside and worked respectfully, thoughtfully, and tirelessly together to reach consensus on issue after issue," said Tubach.

"Each team brought different strengths to the collective effort and shared them generously. Some of the attorneys had deep criminal trial experience, some were antitrust experts, some were well-versed in local practice," continued Pletcher.