Jien et al v. Perdue Farms, Inc. et al

THIRD AMENDED CONSOLIDATED COMPLAINT against Agri Stats, Inc., Allen Harim Foods, LLC, Amick Farms, LLC, Butterball, LLC, Cargill Meat Solutions Corporation, Case Farms, LLC, Case Foods, Inc., Fieldale Farms Corporation, Foster Poultry Farms, George's Foods, LLC, George's, Inc., Jennie-O Turkey Store, Inc., Keystone Foods, LLC, Koch Foods, Inc., Mar-Jac Poultry, Inc., Mountaire Farms, Inc., O.K. Foods, Inc., Peco Foods, Inc., Perdue Farms, Inc., Perdue Foods LLC, Pilgrim's Pride Corporation, Sanderson Farms, Inc., Simmons Foods, Inc., Tyson Foods, Inc., Wayne Farms, LLC, Webber, Meng, Sahl and Company, Inc., filed by Glenda Robinson, Kevin West, Emily Earnest, Judy Jien, Kieo Jibidi, Elaisa Clement.(bmhs, Deputy Clerk)

District of Maryland, mdd-1:2019-cv-02521

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86 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MARYLAND JUDY JIEN 2781 Alton Avenue, Apt. B Springdale, AR 72764 CIVIL ACTION NO. 1:19-CV-2521-SAG KIEO JIBIDI THIRD AMENDED CONSOLIDATED 317 Berry Street, Apt. 203 COMPLAINT Springdale, AR 72764 JURY TRIAL DEMANDED ELAISA CLEMENT 2007 Keith Circle, Apt. 8 Springdale, AR 72764 GLENDA ROBINSON 979 Oliver Drive Forest, MS 39074 EMILY EARNEST 2417 Shady Brook Lane Haleyville, AL 35565 KEVIN WEST 1301 Spring Lane W Cordele, GA 31015 on behalf of themselves and all others similarly situated, Plaintiffs, v. PERDUE FARMS, INC. 31149 Old Ocean City Road Salisbury, MD 21804 County of Residence: Wicomico County PERDUE FOODS LLC 31149 Old Ocean City Road Salisbury, MD 21804 County of Residence: Wicomico County TYSON FOODS, INC. 2200 West Don Tyson Parkway Springdale, AR 72762 86 KEYSTONE FOODS, LLC 905 Airport Road, Suite 400 West Chester, PA 19380 PILGRIM'S PRIDE CORPORATION 1770 Promontory Circle Greeley, CO 80634 SANDERSON FARMS, INC. 127 Flynt Road Laurel, MS 39443 KOCH FOODS, INC. 1300 West Higgins Road, Suite 100 Park Ridge, IL 60068 WAYNE FARMS, LLC 4110 Continental Drive Oakwood, GA 30566 MOUNTAIRE FARMS, INC. 29005 John J. Williams Highway Millsboro, DE 19966 PECO FOODS, INC. 1101 Greensboro Avenue Tuscaloosa, AL 35401 SIMMONS FOODS, INC. 601 North Hico Street Siloam Springs, AR 72761 FIELDALE FARMS CORPORATION 555 Broiler Boulevard Baldwin, GA 30511 GEORGE'S, INC. 402 West Robinson Avenue Springdale, AR 72764 GEORGE'S FOODS, LLC 19992 Senedo Road Edinburg, VA 22824 FOSTER POULTRY FARMS 1000 Davis Street Livingston, CA 95334 86 CASE FOODS, INC. 385 Pilch Road Troutman, NC 28166-8782 CASE FARMS, LLC 385 Pilch Road Troutman, NC 28166-8782 O.K. FOODS, INC. 4601 N 6th Street Fort Smith, AR 72904 ALLEN HARIM FOODS, LLC 29984 Pinnacle Way Millsboro, DE 19966 AMICK FARMS, LLC 2079 Batesburg Highway Batesburg, SC 29006 MAR-JAC POULTRY, INC. 1020 Aviation Boulevard Gainesville, GA 30501 BUTTERBALL, LLC One Butterball Lane Garner, NC 27529 JENNIE-O TURKEY STORE, INC. 1 Hormel Place Austin, MN 55912 CARGILL MEAT SOLUTIONS CORPORATION 825 East Douglas Avenue, 9th Floor Wichita, KS 67202 AGRI STATS, INC. 6510 Mutual Drive Fort Wayne, IN 46825 WEBBER, MENG, SAHL AND COMPANY, INC. d/b/a WMS & COMPANY, INC. 1200 E. High Street, Suite 104 Pottstown, PA 19464 Defendants. 86 TABLE OF CONTENTS Page I. INTRODUCTION ...............................................................................................................1 II. JURISDICTION AND VENUE ..........................................................................................8 III. PARTIES ...........................................................................................................................10 A. Plaintiffs.................................................................................................................10 B. Defendants .............................................................................................................11 1. Perdue Defendants .....................................................................................11 a. Perdue Farms, Inc. .........................................................................11 b. Perdue Foods LLC .........................................................................13 2. Tyson Defendants ......................................................................................14 a. Tyson Foods, Inc............................................................................14 b. Keystone Foods, LLC ....................................................................16 3. Pilgrim's Pride Corporation .......................Error! Bookmark not defined. 4. Sanderson Farms, Inc.................................................................................19 5. Koch Foods, Inc. ........................................................................................20 6. Wayne Farms, LLC....................................................................................22 7. Mountaire Farms, Inc.................................................................................23 8. Peco Foods, Inc..........................................................................................24 9. Simmons Foods, Inc...................................................................................25 10. Fieldale Farms Corporation .......................................................................26 11. George's Defendants..................................................................................27 a. George's, Inc..................................................................................27 b. George's Foods, LLC.....................................................................29 12. Foster Poultry Farms ..................................................................................30 13. Case Foods Defendants..............................................................................31 a. Case Foods, Inc..............................................................................31 -i- 86 b. Case Farms, LLC ...........................................................................32 14. O.K. Foods, Inc..........................................................................................33 15. Allen Harim Foods, LLC ...........................................................................34 16. Amick Farms, LLC ....................................................................................36 17. Mar-Jac Poultry, Inc...................................................................................37 18. Butterball, LLC ..........................................................................................38 19. Jennie-O Turkey Store, Inc. .......................................................................40 20. Cargill Meat Solutions Corporation...........................................................41 21. Agri Stats, Inc. ...........................................................................................42 22. Webber, Meng, Sahl and Company, Inc. ...................................................44 IV. AGENTS AND CO-CONSPIRATORS ............................................................................45 A. Tyson Agents and Co-Conspirators .......................................................................45 B. Pilgrim's Agents and Co-Conspirators ..................................................................47 C. Sanderson Farms Agents and Co-Conspirators .....................................................48 D. Koch Foods Agents and Co-Conspirators..............................................................48 E. Wayne Farms Agent and Co-Conspirator ..............................................................51 F. Mountaire Farms Agent and Co-Conspirator ........................................................51 G. Simmons Foods Agent and Co-Conspirator ..........................................................51 H. George's Agents and Co-Conspirators ..................................................................52 I. Foster Farms Agent and Co-Conspirator ...............................................................52 J. Case Foods Agent and Co-Conspirator..................................................................52 K. Allen Harim Agents and Co-Conspirators.............................................................53 L. Mar-Jac Agents and Conspirators..........................................................................53 M. Jennie-O Turkey Agents and Co-Conspirators ......................................................54 N. Cargill Agent and Co-Conspirator .........................................................................54 O. Other Agents and Co-Conspirators ........................................................................55 V. TRADE AND COMMERCE.............................................................................................57 - ii - 86 VI. FACTUAL ALLEGATIONS ............................................................................................58 A. Background ............................................................................................................58 1. Poultry Industry .........................................................................................58 2. Poultry Processing Facilities......................................................................59 3. Poultry Processing Workers.......................................................................61 4. Compensating Poultry Processing Workers...............................................62 5. Centralized Determination of Compensation for Poultry Processing Workers ...................................................................................64 6. Limited Role of Labor Unions...................................................................66 7. Demographics of Hourly-Paid Poultry Processing Workers .....................66 8. Demographics of Salary-Paid Poultry Processing Employees ..................................................................................................69 B. Conspiracy to Fix Compensation ...........................................................................70 1. Defendant Processors Unlawfully Exchanged Compensation Information Through Detailed Surveys that They Designed ...........................................................................................72 a. The Poultry Industry Survey Group...............................................73 b. Background on WMS ....................................................................73 c. WMS Was Retained by Defendant Processors to Establish a Veneer of Legality.......................................................75 d. Defendant Processors' Control of the Poultry Industry Compensation Survey ......................................................77 e. Positions Covered in the Poultry Industry Compensation Surveys...................................................................81 f. Future Compensation Data in the Poultry Industry Compensation Survey ....................................................................84 g. Disaggregated Raw Data in the Poultry Industry Compensation Survey ....................................................................88 h. The CHIWI ....................................................................................94 i. Tyson-Sponsored Hourly Plant Maintenance and Production Survey ..........................................................................95 j. Deanonymization of Compensation Survey Data ..........................99 - iii - 86 k. Effects of the Broiler Antitrust Lawsuit on the Compensation Surveys.................................................................101 l. Withdrawals from the Poultry Industry Survey Group ...........................................................................................103 2. Defendant Processors Discussed and Fixed Compensation at Annual Roundtable Meetings...............................................................105 a. Roundtable Sessions Attended by WMS .....................................108 b. Roundtable Sessions that Excluded WMS...................................112 c. Effect of the Broilers Antitrust Lawsuit on the Poultry Industry Compensation Meetings ...................................116 3. Direct Communications Between Defendant Processors' Executives Regarding Compensation ......................................................117 4. Exchanging Detailed Compensation Data Through Agri Stats ..........................................................................................................124 5. Communications About Compensation Between Defendant Processors' Complexes and Plants...........................................................133 6. Plus Factors that Render the Poultry Industry Susceptible to Collusion .........................................................................