Sysco Corporation is at the center of a widening legal dispute with the world’s largest litigation funder, Burford Capital Limited. In their complaint, Burford seeks a court order that would bar Sysco from settling price-fixing claims against major US chicken, pork and beef producers. This case has serious implications for both companies and has yet to be resolved.
Burford subsidiaries Glaz, Posen Investments and Kensosha Investments on Friday told a New York Supreme Court judge that Burford had advanced more than $140 million to Sysco in exchange for a share of any settlements in the antitrust litigation.
Related: US/UK: Sysco buys rival foodservice firm Brakes Group for $3.1 billion
Sysco was required to get Burford’s approval before signing any deals, the funder said. Burford claimed Sysco was preparing to settle for “low-ball” amounts and a “pittance.”
An arbitration panel awarded Burford a preliminary injunction in a 2-1 order on March 10, barring Sysco from finalizing its proposed settlements. Burford’s new lawsuit in New York seeks confirmation of the arbitration panel’s award.