Koch Foods Inc., the fifth-largest poultry processor in the US, reached an agreement with the US Department of Justice to settle claims that it used illegal fees and penalties to prevent suppliers from selling to its rivals.

The company was accused of requiring chicken farmers to pay substantial termination penalties to switch from working for Koch to a rival processor. The DOJ said in a statement that its proposed deal, which is pending court approval, bars Koch from harassing and penalizing bird suppliers and requires the company to return expenses, fees and penalties unlawfully imposed on them.