Washington AG cries fowl, but poultry payout for chicken price-fixing ruffles some feathers

Settlement money of $460,000 from a major antitrust lawsuit may seem like chicken feed to some people. But consider that these funds are being added to a pool worth millions, which, in turn, is being divvied up and sent to Washington residents.

“As a result of corporate greed and illegal price-fixing, Washingtonians paid more for chicken without realizing it,” said Washington State Attorney General Bob Ferguson in a statement. “We are holding accountable those responsible, and getting money back to Washington families who were most harmed. We will continue to serve as a force for economic justice for Washingtonians.”

RELATED: Washington reaches settlement in chicken conspiracy lawsuit

Most of the 19 companies that Washington sued in a 2021 antitrust lawsuit agreed to settle in early December. The coop of settlement funds added up to $40.6 million. This week, the AG's Office announced that two more producers have agreed to pay up, adding $460,000 to that sum. That means the state could be cooking up more checks and sending them to Washington mailboxes.

Price fixing appears to be one issue that really sticks in Ferguson's gizzard. Washington also sued tuna producers in 2020, in a separate price-fixing lawsuit, and took in $5.1 million.

All of these funds are being divvied up and dispersed to eligible Washington residents.

The approach that the AG's Office has taken to disperse checks has ruffled some partisan feathers. The conservative think tank Washington Policy Center points out that, while all Washington consumers overpaid for chicken and tuna over the past decade, the state is only giving checks to residents under a certain income (below 175% of the federal poverty level). It argues that the Legislature should make decisions over who gets the money, and who doesn't.

The chair of the Washington State Republican Party, Jim Walsh, has alleged that some checks have been sent to deceased residents and has been asking Washingtonians to send him pictures of such checks. The Washington State GOP has also attempted to raise suspicions over the checks, noting that they were sent to low-income voters bearing Ferguson's name during a time he is also running for governor.

The checks are not signed by Ferguson. They do come with a letter from the attorney general, explaining why they were sent. In response to GOP criticism, Ferguson told KIRO Radio that his office used a list of low-income residents provided by Experian and that, "Obviously, on a data set that large, the system’s not going to be perfect.”

The office argues that the settlement money is nothing to bawk at, and that funds are being "targeted to help Washingtonians least able to afford the harm caused by the price-fixing schemes."

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According to the AG's Office, about 402,200 Washington households meet the income requirement to receive settlement checks (about 15% of the state population). A single person will receive a $50 check and multi-person households will get $120.

Checks were mailed out over the month of December. If you never received a check, but believe you should have, visit www.refundcheck.atg.wa.gov for more information.

Washington chicken and tuna lawsuits

Ferguson, who has served as Washington's attorney general for 10 years and is running for governor in 2024, sued 19 broiler chicken producers in 2021. He roasted the companies, alleging that since at least 2008, they conspired to limit the supply of the birds in order to drive prices higher. At the time, Ferguson stated, "If you’ve eaten chicken in the last decade, this conspiracy touched your wallet." In the antitrust lawsuit, the AG's Office argued that 90% of Washington consumers buy products with chicken and overpaid during this time.

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In December 2023, the Attorney General's Office announced that it had settled with the majority of chicken producers for $40.6 million, one month before the office announced that two more producers agreed to add $460,000 to that sum.

Two more chicken producers remain locked in a legal battle with the state — Foster Farms and Wayne-Sanderson Farms. A trial in King County Superior Court is currently slated for October 2024.

Washington state also sued tuna producers in 2020 over the same type of price-fixing conspiracy, alleging the companies communicated to keep prices high. In 2020, Ferguson said, "We cannot have a free market when corporate titans are able to tip the scales to their own bank accounts. Washingtonians lost millions as a result of this corporate greed. I intend to get that back for them.”

KUOW's Amy Radil contributed to this post.