Koch operates processing facilities in Alabama, as well as Georgia, Mississippi and Tennessee.
Koch Foods opened a $60 million grain mill in Attalla, Ala., Thursday, March 17, 2022. The Justice Department today filed a civil lawsuit against Koch Foods, alleging the company unfairly required chicken farmers to pay the company a termination penalty if they switched to working for competitors.
The department says Koch sued or threatened to sue more than a dozen family farmers who tried to switch to a Koch competitor. Because of this, the policy operated as an de facto noncompete clause, in violation of the Sherman Act, officials said. Inform all current growers with contracts containing a termination penalty provision that Koch will not enforce the provision.
Refrain from including a termination penalty in any grower contracts and from taking any steps to collect any payments for the next seven years.
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