Arkansas chicken growers sue poultry execs for damages from closure, depopulated flocks

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Thirteen farmers on Wednesday filed a federal lawsuit against executives of bankrupt Arkansas poultry company Cook’s Venture for the financial consequences chicken growers faced when the company abruptly closed in late 2023.

According to the complaint filed in the U.S. District Court for the Western District of Arkansas, the plaintiffs are bringing action for “deceptive and otherwise unlawful conduct” against the defendants, to seek monetary damages, attorney’s fees and other relief under the Packers and Stockyards Act of 1921.

Plaintiffs are Melisa Barr, Johnnie Bunch, Dustin Maybee, Lakeview Farms LLC, Leslie Harp, Lance Logan, Linda Sparks, Mike Unruh, Stuart Tanner, Tony Wagoner, Darren Swofford, Gregory Wilson and Bill Melbourne.

Defendants include four principal executive officers behind the Decatur-based company — Matthew Wadiak, Blake Evans, Tim Singleton and John Niemann.

The plaintiffs are represented by Antimonopoly Counsel, FarmSTAND, the Brad Hendricks Law Firm and TFPC, a Maine public-interest law firm. Wednesday’s lawsuit seeks to hold individuals behind the “Cooks Venture scam” accountable, and claims directly against Cooks Venture must go through bankruptcy court, according to a press release.

“This nation’s laws do not permit what these four men did to poultry growers in the Ozarks through the Cooks Venture scam,” said Basel Musharbash of Antimonopoly Counsel, lead counsel for the plaintiffs. “If these growers prevail in court, it will send a powerful message: you cannot make a quick buck by swindling farmers who just want to create a quality product.”

Northwest Arkansas chicken growers told state lawmakers at a February hearing that they were still cleaning up the mess left after the state euthanized a million chickens. The Arkansas Department of Agriculture depopulated the birds at the request of Cooks Venture after the company shuttered suddenly in late November due to financial problems.

In February, three chicken farmers told legislators some farmers had yet to receive payment or have the rotting carcasses removed from their property. Cooks Venture had said in letters that it would compensate growers for services already rendered and be responsible for the disposal of the birds.

Cooks Venture had operations in Arkansas and Oklahoma and sold meat from pasture-raised heirloom chickens, as well as grass-fed beef and lamb, that was flash frozen and delivered in a customizable box to customers’ homes, according to its website.

When he founded the company in 2019, Wadiak, former chief operating officer of Blue Apron, described Cooks Venture as a “next-generation food company rooted in regenerative agriculture and transparency.”

Wednesday’s complaint alleges six counts of violating sections of the Packers and Stockyards Act for various actions, including conspiracy to engage in or use deceptive practices or devices and deprivation of the right to prompt and full payment for live poultry.

“In depriving Growers of prompt and full payment and attempting to delay the collection of such payment by Growers, Defendants’ conduct was malicious, oppressive, and in reckless disregard of Growers’ rights,” the complaint states. “Among other things, the Defendants’ conduct was intended to injure Growers; exploited Growers’ dependence upon Defendants’ for information, and their powerlessness in the face of state officials; and caused unjustifiably severe harm to Growers.”

Plaintiffs have requested a trial by jury on all issues that are triable.

Source:Arkansas Advocate