Burford Capital Granted Permission to Lead Sysco Chicken Antitrust Lawsuits

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A federal judge in Chicago, U.S. District Judge Thomas Durkin, has ruled in favor of litigation funder Burford Capital, allowing it to be named as the plaintiff in lawsuits initiated by its financing client Sysco. This decision dismisses objections from chicken producers seeking to block the move.

Sysco, backed by Burford, had accused major chicken and pork suppliers of engaging in a conspiracy to fix wholesale prices, violating U.S. antitrust law. With Burford’s financial support, Sysco pursued litigation against these suppliers. While some defendants have settled, all have denied any wrongdoing.

Burford, a significant player in the litigation funding industry, has invested $140 million since 2019 in supporting antitrust cases. The substitution of Burford as the plaintiff arose following a dispute between Burford and Sysco regarding the trajectory and potential outcomes of the cases.

Judge Durkin’s order supported Burford’s position, stating that it was not his role to interfere with the business decisions of sophisticated parties. He noted that such assignments are common in modern litigation and that Burford’s involvement was not unusual.

Meanwhile, in Minnesota, a U.S. magistrate judge raised concerns about Burford’s motives and authority to steer Sysco’s cases, leading to a different outcome where Burford was not allowed to be named the plaintiff.