Sysco and Pilgrim’s Pride $50 Million Settlement Nixed on Appeal

A $50 million antitrust settlement between Pilgrim’s Pride Corp. and Sysco Corp. was overturned Thursday after a federal appeals court found several material terms were unresolved when the parties agreed to settle.

“If material terms—terms either party deems essential—are left open to future negotiations, an initial agreement in principle cannot be binding for an entirely executory contract like this proposed settlement agreement,” Judge David F. Hamilton said for the US Court of Appeals for the Seventh Circuit, reversing a district court’s grant of summary judgment to Pilgrim’s Pride.

The case stems from broader antitrust suits alleging Pilgrim’s Pride engaged in ...