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Thirteen former poultry growers are suing the leadership of Cooks Venture for allegedly engaging in deceptive and unlawful conduct. The growers claim to have lost hundreds of thousands of dollars to the now-shuttered chicken company, which promoted sustainability and farmer welfare. The lawsuit, filed in Arkansas Western District Court, accuses former Cooks executives of misleading contract chicken growers and operating a “defacto ponzi scheme.” The growers are seeking restitution and compensation for unpaid services.

This lawsuit is one of the first to challenge a company’s practices under recent updates to the Packers and Stockyards Act, which now includes protections against false or misleading statements in contract formation, performance, and termination. According to court documents, Cooks Venture aggressively recruited growers, convincing them to invest large sums of money into farm assets and sign contracts that could not be fulfilled. Despite financial troubles, the company continued to recruit farmers until its abrupt shutdown in late 2023, leaving contract growers with over 1 million birds to dispose of themselves.

Cooks Venture filed for Chapter 7 bankruptcy in April, with Bel’s Poultry acquiring its production assets the following month. The contract poultry growers are represented by legal counsel and are seeking justice for the alleged misconduct by Cooks Venture executives.

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