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Wayne-Sanderson Farms Takes Legal Action Against DOJ

In a significant move aiming to clarify its legal standing, Wayne-Sanderson Farms has submitted a motion in court, challenging recent actions taken by the U.S. Department of Justice (DOJ). The poultry industry leader seeks to confirm that its participation in the Agri Stats subscription service aligns with legal standards, a necessity prompted by unprecedented initiatives from the DOJ's Antitrust Division.

Background of the Case

On January 18, 2025, at an unusual hour of 2:15 AM, the Antitrust Division filed a motion alleging that Wayne-Sanderson Farms had violated the Consent Decree established in 2022 due to its continued use of Agri Stats. This service is widely recognized within the industry for benchmarking and performance comparisons. The DOJ's actions are perceived by the company as an indirect method to eliminate Agri Stats from the poultry sector, as they are concurrently pursuing a lawsuit to permanently shut down the service in a Minnesota federal court.

The Consent Decree, created as a negotiated settlement during the merger of Wayne Farms and Sanderson Farms, compelled the companies to resolve unrelated class action allegations concerning employee wages. The merger was contingent upon this settlement, which saw Wayne-Sanderson Farms accept a hefty payout of $69.8 million to plaintiffs.

The Company's Response

Jeremy Kilburn, Chief Legal Compliance Officer of Wayne-Sanderson Farms, denounced the DOJ's latest allegation as both premature and unfounded. He highlighted that rather than engaging constructively with the company, the monitors overseeing compliance have spent more time meeting with the DOJ than with Wayne-Sanderson Farms. This raised significant concerns about the effectiveness and purpose of the monitorship put in place following the Consent Decree.

Kilburn pointed out that throughout the nearly two years, totaling almost $2 million spent on monitorship fees, confusion remains about what aspects of the Agri Stats reports the Division finds objectionable. Despite numerous requests for clarifications from the company, no specific issues regarding Agri Stats have been communicated until the recent filing.

Future Steps

Wayne-Sanderson Farms remains hopeful that the DOJ will soon clarify its position and cease what Kilburn describes as wasteful and unproductive proceedings. The company emphasizes its commitment to transparency and compliance, noting the extensive outreach efforts made to work collaboratively with the monitors and the DOJ to rectify any misunderstandings regarding Agri Stats.

About Wayne-Sanderson Farms

Established as a formidable name in the poultry industry, Wayne-Sanderson Farms stands as the third-largest producer in the United States. They operate a robust infrastructure, featuring 23 processing facilities across several states including Alabama, Arkansas, and North Carolina. The company prides itself on a strong ethical foundation, focusing on provide high-quality poultry products to various market segments. Their brand portfolio includes SANDERSON FARMS®, COVINGTON FARMS®, WAYNE FARMS®, PLATINUM HARVEST®, CHEF'S CRAFT®, and NAKED TRUTH®, reflecting a commitment to quality and responsible business practices. For more intricate details, visit Wayne-Sanderson Farms' website.