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A legal battle over bone-laden chicken has erupted in a Seattle federal court, with Washington-based Innovative Solutions International accusing Pilgrim's Pride of selling substandard meat. The issue allegedly led to a costly recall of Chili Lime Chicken Burgers, a long-standing favorite at Trader Joe's, after nearly two decades on shelves.

Innovative claims Pilgrim's knowingly sold defective chicken—mocked internally as "shit in a box"—that jeopardized their 15-year relationship with Trader Joe's. The product, labeled as boneless breast meat, allegedly contained large bone fragments, sparking consumer complaints and pulling the burgers off the market.

Innovative's founder, Frank Sorba, testified about the dire consequences, noting the recall cost the company over $18 million and a quarter of its business.

In its defense, Pilgrim's argued the chicken was labeled accurately for export purposes and shifted blame to downstream brokers like Houlihan Trading Co. for misrepresenting it. Pilgrim’s also pointed to Innovative's failure to detect the bone fragments during manufacturing.

Meanwhile, Houlihan, which settled some claims for $3 million, is also presenting evidence against Pilgrim's, asserting the chicken violated internal quality standards.

The trial, expected to last a week, will weigh whether Pilgrim’s or its brokers bear ultimate responsibility for the defective product.

The case, Innovative Solutions International Inc. v. Houlihan Trading Co. Inc. et al., continues in the Western District of Washington.