In a significant development, Sysco Corp. has been permitted by a federal judge in Illinois to transfer its claims in a substantial chicken price-fixing lawsuit to Burford Capital Ltd., an external funder involved in the litigation. This move marks a victory for Burford Capital, which had previously provided $140 million to Sysco to carry on the price-fixing lawsuits against meat producers. In line with previous agreements between both parties, Burford can now take over those claims after showing resistance to Sysco’s plans to settle some cases for sums considered inadequate by the funding firm.
Opposition has been voiced by meat producers who argue that Burford lacks a direct connection to the litigation. Their line of push-back echoes a February decision by a Minnesota federal judge who rejected a similar request for substitution in lawsuits concerning pork and beef price-fixing; the judge cited concerns current settlements might be hindered by Burford’s pursuit of maximum ROI.
Overruling this, Judge Thomas M. Durkin stated it was an “unsurprising and logical result of the dispute between Sysco and Burford that arose from the funding agreement.” He further commented that such assignments are a “fact of modern litigation.” The case can be followed under In re Broiler Chicken Antitrust Litig., N.D. Ill., No. 16-cv-8637, 3/21/24.
Continuations of these legal proceedings will be monitored by industry professionals, analyzing possible effects they may have on external litigation funding agreements and future settlements. Moving forward, financial and legal circles will remain watchful of the course this case takes, potentially setting legal precedents in the contentious domain of litigation finance.
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