A legal dispute over the influence of third-party litigation financiers is intensifying in a Chicago federal court, centering on a clash between meat processor Tyson Foods and Burford Capital, one of the world’s largest litigation funders, according to Reuters.
In April, Tyson filed a lawsuit accusing Burford of unlawfully obstructing a potential settlement in a major chicken price-fixing lawsuit, which Tyson claims Burford interfered with to secure a larger financial gain. Per Reuters, Tyson alleges that Burford sought to “co-opt the legal system” by blocking a settlement between Tyson and Burford’s client, food distributor Sysco.
This week, Burford responded by requesting the court dismiss Tyson’s suit, countering that Tyson’s allegations are baseless and merely a distraction from the substantive claims of price-fixing. Burford argued in court papers that Tyson was the party that declined Sysco’s final settlement offer in late 2021. According to Reuters, Burford described Tyson’s accusations as “threadbare” and “rank speculation,” denying any wrongdoing or interference with settlement negotiations.
Read more: Tyson Foods, Others Settle Pork Price-Fixing Suit for $64 Million
Litigation funding involves financial backing provided to plaintiffs in exchange for a share of any settlements or judgments. Burford Capital has invested roughly $140 million since 2019 in supporting Sysco’s antitrust claims against Tyson and other meat processing companies, according to court documents cited by Reuters. Sysco’s contract with Burford granted the funder a role in some of the settlement discussions.
The dispute arises amid a broader, ongoing series of lawsuits accusing Tyson and other major meat producers of conspiring to fix prices across various meat markets. Several of these cases have resulted in settlements worth tens of millions of dollars or more. Tyson has consistently denied all allegations of wrongdoing.
Burford has a history of actively managing the litigation it finances. In 2023, it successfully prevented Sysco from settling with a different defendant over what it deemed an insufficient settlement amount. Sysco has since exited the litigation after transferring its rights to a Burford affiliate, Carina Ventures, per Reuters.
Source: Reuters
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