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Lawsuit Alleges Holden Farms Improperly Received PPP Loan Forgiveness While Violating Animal Welfare Laws

A lawsuit filed in the U.S. District Court for the District of Minnesota alleges that Holden Farms, a pig farming operation, improperly received forgiveness on a $2.57 million Paycheck Protection Program (PPP) loan while engaging in illegal practices at its facility.

The Animal Legal Defense Fund initiated the legal action under the False Claims Act in September 2021, but the case remained sealed at the government’s request until July 2023. The lawsuit follows an undercover investigation by Animal Outlook that reportedly documented violations of multiple state and federal laws.

According to court documents, Holden Farms certified in its PPP loan application that it was not violating any local, state, or federal laws—a requirement for receiving and having the loan forgiven. However, the Animal Legal Defense Fund contends that undercover footage proves the company violated the federal Swine Health Protection Act, Minnesota’s Anti-Garbage Feeding Law, and state animal cruelty statutes.

The investigation reportedly captured Holden Farms employees engaging in a controversial practice known in the industry as “feedback.” Video evidence allegedly shows workers cutting open deceased piglets, emptying their bodily fluids and intestines into a blender, then mixing this with feces from mother pigs and water before feeding the mixture to other pregnant sows.

This practice appears to violate Minnesota’s Anti-Garbage Feeding Law, which prohibits feeding animal remains to livestock without proper treatment. State law requires such material to be heated to 212 degrees Fahrenheit for at least 30 minutes to kill potential pathogens—a step the footage suggests was not taken. Additionally, the lawsuit claims Holden Farms lacks the required license to feed garbage to pigs under Minnesota law.

Garbage feeding regulations exist primarily to prevent the spread of zoonotic diseases and other illnesses that can devastate confined animal populations. The practice of “feedback” has been controversial in the pork industry, with proponents claiming it helps build immunity in breeding sows while critics point to disease risks and animal welfare concerns.

Animal Outlook reports that it provided the video evidence and a detailed report to local law enforcement, requesting action against Holden Farms. Despite multiple follow-ups, the organization claims it never received a response from law enforcement officials, which likely factored into the decision to pursue the False Claims Act lawsuit.

The False Claims Act is a powerful legal tool that allows the government to recover damages from entities that knowingly submit false claims or provide inaccurate information to federal programs. It also permits private citizens and organizations to file lawsuits on the government’s behalf through “qui tam” provisions. If successful, such lawsuits can result in triple damages plus additional penalties for the defendant.

When these qui tam lawsuits are filed, they remain “under seal” to allow government investigators time to review the allegations and decide whether to intervene. During this period, which can extend for months or years with court approval, defendants are not notified of the proceedings. In this case, the seal remained in place for nearly two years before being lifted.

The case highlights growing scrutiny of industrial farming practices and raises questions about oversight of pandemic relief funds. The PPP program, created in response to the COVID-19 pandemic, provided over $800 billion in forgivable loans to businesses but has faced criticism for inadequate verification of eligibility requirements.

If the court rules against Holden Farms, the company could face significant financial penalties—potentially three times the $2.57 million loan amount plus additional fines. The case also underscores the increasing role of undercover investigations and whistleblower actions in exposing alleged violations in the agricultural industry.

Neither Holden Farms nor the U.S. Attorney’s Office has issued public comments on the pending litigation.

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19 Comments

  1. Patricia White on

    This is a complex issue that highlights the need for stronger oversight and enforcement in the agricultural sector. Transparency and accountability should be the standard, not the exception.

    • Well said. Farms that receive public funding must be held to the highest standards of ethical and legal conduct. The public deserves nothing less.

  2. John X. Rodriguez on

    This is a concerning allegation against Holden Farms. If proven true, it would be a serious breach of trust and legal obligations. I hope the investigation uncovers the full truth of the matter.

    • Patricia Lopez on

      Absolutely. Proper treatment of animals and compliance with the law should be the bare minimum for any farm operation. Allegations of wrongdoing like this must be thoroughly examined.

  3. Isabella Lopez on

    The details provided suggest a troubling pattern of behavior at Holden Farms. I hope the investigation can uncover the full truth and hold the company accountable if the allegations are substantiated.

  4. Emma V. Miller on

    It’s concerning to see allegations of this nature against a major pork producer like Holden Farms. Proper animal welfare and responsible use of public funds should be non-negotiable.

    • Jennifer Williams on

      Absolutely. The public needs to have confidence that farms are operating ethically and in compliance with the law. This case bears close watching.

  5. The allegations against Holden Farms are very serious and, if proven true, would represent a major breach of public trust. I hope the investigation can shed light on the full extent of any wrongdoing.

  6. The use of PPP loans is a complex issue, especially when it comes to verifying compliance. I’m curious to see how Holden Farms responds and what the courts ultimately decide on this case.

    • Jennifer Jackson on

      You raise a good point. PPP loan forgiveness requirements were not always clear, so it will be important to understand the specifics of Holden Farms’ situation.

  7. Amelia U. Williams on

    Receiving PPP loan forgiveness while allegedly violating animal welfare laws is a troubling allegation. Transparency and accountability are crucial for farms to maintain public trust.

    • Agreed. The public deserves to know the facts, and any company found to be acting unethically should face appropriate consequences.

  8. Animal welfare is a critical concern in the food production industry. If these allegations are true, it’s disturbing to think Holden Farms may have misled authorities to receive PPP loan forgiveness.

    • Oliver Martinez on

      I agree. Proper animal treatment should be a baseline requirement, not something farms try to circumvent. This case could have wider implications for the industry.

  9. Elizabeth Brown on

    This case underscores the importance of robust regulatory oversight and enforcement in the agricultural industry. Proper animal treatment and responsible use of government aid should be non-negotiable.

    • I agree completely. Farms that receive public funding must be held to the highest standards of ethical conduct and transparency. There can be no room for violations or misrepresentations.

  10. This case highlights the importance of robust oversight and enforcement of regulations in the agricultural sector. Improper animal treatment and misuse of government aid programs cannot be tolerated.

  11. James Martinez on

    The allegations against Holden Farms are very concerning. If true, it would be a betrayal of public trust and a failure to uphold basic animal welfare standards. I hope the legal process can uncover the full truth.

  12. Michael Jackson on

    Violations of animal cruelty laws and misusing government aid programs are very serious issues. I hope the legal process can shed light on what actually occurred at Holden Farms.

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