DENVER — Springdale, Ark.-based Tyson Foods Inc. and JBS USA, Greeley, Colo., agreed to pay a combined $127.25 million to settle claims that they fixed the wages of employees working at red meat processing plants the companies own and operate.

The settlement is part of class action that involved other meat and poultry processors, including Perdue Farms, Seaboard Foods LLC and Triumph Foods LLC. The two additional settlements with JBS and Tyson for $55 million and $72.25 million respectively bring the total settlement to $138.5 million, according to the court document.

In a complaint filed with the US District Court for the District of Colorado, the plaintiffs alleged that leading red meat processors and two consulting companies conspired to “stabilize the compensation paid to workers at red meat processing plants.”

“This action was filed after a comprehensive investigation by plaintiffs’ counsel, which included assessments of industry wages, interviewing industry witnesses and extensive research into the red meat processing industry,” the court document stated. “As a result of that investigation, plaintiffs’ lengthy complaint was supported by specific allegations, including allegations that defendants entered into an illegal agreement in violation of the Sherman Act.”

Lawyers representing the companies filed a motion to dismiss the complaint on Feb. 17, 2023, which the court denied holding that the plaintiffs had alleged sufficient evidence to pursue their wage-fixing and information exchange claims.

Additionally, the plaintiffs’ lawyers filed an amended complaint that expanded the class, named additional defendants and contained “… more compelling allegations of conspiratorial misconduct.”

As part of the settlement, JBS and Tyson both agreed to provide data, documents, information and witnesses from its red meat processing operations.

Plaintiffs’ lawyers asked a judge on March 8 to preliminarily approve both settlements. The original complaint was filed in 2022.