A federal grand jury in Denver indicted Koch Foods, the fifth-largest U.S. poultry processor, for taking part in a nationwide conspiracy to fix prices and rig bids for poultry products, announced the Justice Department on Thursday. Koch Foods said it “steadfastly denies” engaging in price-fixing.
Pilgrim’s Pride, the second-largest poultry processor, pleaded guilty and was fined $107 million in February for taking part in the long-running conspiracy, which the Justice Department says began as early as 2012 and continued until at least 2019.
Koch Foods was scheduled to appear before a federal magistrate on Aug. 11 on the charge of violating the Sherman Antitrust Act, which allows fines of more than $100 million on corporations. The company is headquartered in Park Ridge, Illinois.
Also on Thursday, a separate U.S. grand jury in Denver indicted four former Pilgrim’s Pride executives for violations of the Sherman Act. The Justice, Commerce, and Agriculture departments and the FBI were taking part in the investigation.
“As today’s charges show, the [antitrust] division remains committed to holding both individuals and companies accountable when they choose profits over following the law,” said Acting Assistant Attorney General Richard Powers.
“Koch steadfastly denies that it or any of its employees engaged in price-fixing,” said a company statement. “Koch has seen no evidence to date that it or any of its employees have committed a crime.”
William Kantola, Koch senior vice president, was among 10 individuals indicted last October for allegedly taking part in the conspiracy.
Tyson Foods, the largest U.S. poultry processor, said in June 2020 that it was cooperating with the Justice Department as part of an application for corporate leniency, which would shield it from criminal charges.
The largest U.S. poultry processors are, in order, Tyson, Pilgrim’s, Sanderson Farms, Perdue, and Koch Food.