North Carolina-based Maxwell Foods has filed suit against Smithfield Foods for allegedly not fulfilling pricing standards which Maxwell says contributed to its decision to close its operation.  The lawsuit comes shortly after the company announced its plans to permanently close its facilities in 2021. 

Maxwell Foods alleges Smithfield breached its contractual obligations to purchase all of Maxwell’s hogs as required under the Production Sales Agreement signed in 1994.   The agreement gave Maxwell favored pricing for hogs sold to Smithfield, but the company claims Smithfield was paying more for hogs to other suppliers than it was paying Maxwell. 

Maxwell is demanding a trial by jury. 

In a statement, Smithfield has said the allegations by Maxwell Foods are not true, and the company will respond to the lawsuit accordingly. 

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