OVERVIEW
The broiler chicken antitrust litigation against chicken producers is based on allegations that they illegally conspired to raise prices for broiler chickens through illegal supply reductions, price fixing and bid rigging from at least January 2008 to at least early 2019. During this period, McDonald’s direct purchasers, HAVI, Armada and ATEC, may have been direct victims of the alleged conspiracy, unknowingly purchasing broiler chickens from Tyson and Keystone Foods at alleged wrongfully inflated prices, which were then resold to McDonald’s and franchisees.
This litigation has a civil and criminal component. First, in September 2016, several different class action lawsuits were filed and are known collectively as In re Broiler Chicken Antitrust Litigation (the “Broilers” litigation). There is one class action under federal law involving a proposed class of direct purchaser plaintiffs (“DPPs”), which is defined as companies that bought chicken products directly from the chicken producers. Additionally, more than 100 companies, including McDonald’s, have opted out of the direct purchaser class and filed their own individual complaints. McDonald’s continues to litigate its direct purchaser claims against the remaining chicken processor defendants. Please note that McDonald’s cannot predict or guarantee the amount or timing of recovery, or if there will be any recovery at all. The Broilers cases are currently proceeding through the discovery (information gathering) phase of litigation. Additional public information about the DPP class action is available at the class administration website: https://www.broilerchickenantitrustlitigation.com.
SETTLEMENT PAYMENTS
Each organization will receive one check and supporting documentation that provides a breakdown of the proceeds by restaurant. It’s recommended that you use this support to apply the proceeds by restaurant and book the credit to Misc. Non-Controllables. If proceeds are provided for a closed restaurant, it’s recommended to book that amount in the “Other” line on the G&A statement. If applicable, a 1099 Form will be issued and you should work with your CPA for any additional accounting and/or tax related questions.
Angeion, LLC, the check distribution company, is required to report payments in excess of $600 to the IRS pursuant to tax rules. Therefore, it will not be issuing a check to any franchisee who does not provide it with a TIN.
CLICK HERE TO SUBMIT YOUR IRS FORM W9. PLEASE NOTE THAT THIS INFORMATION WILL BE VERIFIED BY THE IRS AND CHECKS WILL BE ISSUED AND MAILED TO THE P1 OPERATOR NAME AND ADDRESS INCLUDED ON THIS FORM.