By Mike Scarcella

June 30 (Reuters) - Litigation financier Burford Capital BURF.L on Monday persuaded a U.S. judge to allow one of its subsidiaries to press a price-fixing lawsuit accusing leading turkey producers of overcharging prices, even though the company has not purchased any food from them.

Chicago-based U.S. District Judge Sunil Harjani rejected arguments from Tyson Foods, Perdue Farms, Hormel Foods, Butterball and other producers that allowing Burford subsidiary Carina Ventures to pursue the antitrust claims ran afoul of public policy.

Litigation funders provide financial support to clients in exchange for a part of any settlement or judgment. Burford is the world’s largest litigation finance provider.

In his ruling, Harjani said that “as litigation funders continue to be involved in the legal system, the bounds of their viability will be tested.” But he said it was up to lawmakers to craft policies restricting the extent of litigation funders' participation in lawsuits.

Tyson, Perdue, Hormel and Butterball did not immediately respond to requests for comment.

Burford declined to comment.

Burford’s Carina sued the turkey producers in 2023, after the funder acquired security rights to claims that were once held by Burford client Sysco Foods.

Sysco was never a plaintiff in the turkey litigation, but Burford has spent $140 million since 2019 backing antitrust claims by food distributor Sysco against Tyson and other meat processors in other cases.

Harjani said the turkey defendants have not provided any evidence that Burford and Carina engaged in any misconduct.

The judge called Sysco a “large and sophisticated corporation” that does not need the defendants or the court second-guessing its business or litigation decisions.

Harjani said it was the job of Congress to write statutes and rules governing federal litigation.

The case is In re: Turkey Antitrust Litigation, U.S. District Court for the Northern District of Illinois, No. 1:19-cv-08318.

Read more:

Litigation funder fires back at Tyson Foods over settlement interference claims

Sysco can’t scrap its Pilgrim’s Pride price-fixing settlements, US judge rules

Burford litigation funder's Carina Ventures sues US turkey suppliers in antitrust case

(Reporting by Mike Scarcella)