Former Poultry Growers Sue Cooks Venture Leadership for Deceptive Practices
Thirteen former poultry growers have filed a lawsuit against the leadership of Cooks Venture, accusing them of engaging in deceptive and unlawful conduct. The growers claim to have lost hundreds of thousands of dollars to the now-shuttered company, which purported to support sustainability and farmer welfare.
The complaint, filed in Arkansas Western District Court, alleges that former Cooks executives misled their contract chicken growers, creating what the plaintiffs describe as a “defacto ponzi scheme.”
Cooks allegedly convinced Ozark chicken growers to make significant financial investments in farm assets and infrastructure, only to abruptly close its operations in late 2023. The affected growers are seeking restitution and compensation for their losses.
Lawsuit Challenges Company Practices Under Packers and Stockyards Act
The lawsuit against Cooks Venture is one of the first to challenge a company’s practices following recent updates to the Packers and Stockyards Act. The Act now includes protections against false or misleading statements in contract formation, performance, and termination.
David Muraskin, litigation director at FarmSTAND and counsel for the plaintiffs, emphasized the importance of holding companies like Cooks Venture accountable for exploiting contract growers.
The lawsuit alleges that Cooks executives aggressively expanded the company, leading growers to invest heavily in farm assets and sign contracts that could not be fulfilled. Despite financial issues, Cooks continued to recruit growers until its sudden closure in November 2023.
Following Cooks’ shutdown, the Arkansas Livestock and Poultry Commission authorized the euthanization of over 1 million birds, citing animal welfare and disease concerns. The responsibility for cleaning up the aftermath fell on Cooks, leaving many growers to handle the disposal of dead birds themselves.
In April, Cooks filed for Chapter 7 bankruptcy, with Bel’s Poultry acquiring its production assets the following month. The contract poultry growers are represented by Antimonopoly Counsel, FarmSTAND, the Brad Hendricks Law Firm, and TFPC.
Muraskin stressed the need to hold companies accountable for false claims and emphasized the importance of creating a better food system for farmers, animals, and consumers.
Neither Pitman Farms nor Cooks’ former CEO responded to requests for comment.