Judge Approves $50M Milk Price-Fixing Settlement Following Multiple Rejections

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

On Monday, a federal judge in Vermont issued preliminary approval on a $50 million settlement that will resolve claims by farmers alleging that Dairy Farmers of America Inc. and Dairy Marketing Services LLC engaged in a milk price-fixing conspiracy.

U.S. District Judge Christina Reiss’ approval of the deal came after rejecting two prior versions of the preliminary settlement. The most recent settlement proposed in December 2015 was approved and represented a resolution of over six years of pending litigation.

The milk price-fixing class action settlement will address the claims of two subclasses of dairy farmers and will lead to an average settlement of $4,000 per dairy farm. This is the same monetary amount that Judge Reiss rejected previously, saying the dollar amount was “modest.”

However, Judge Reiss noted that in the new version of the Dairy Farmers class action lawsuit settlement, farmers would be allowed to exclude themselves from the deal so they could pursue individual claims for higher settlement compensation if they want.

In July 2014, the initial settlement was proposed and was given preliminary approval in November 2014. However, in March 2015 Judge Reiss refused to grant final approval of the settlement.

The farmers submitted a request to have the judge reconsider granting final approval of the settlement, but in September, Judge Reiss denied approval of the settlement once again, saying she hadn’t found the initial version to be fair and the revision did not include changes that were substantial enough to warrant her approval.

The initial milk price-fixing class action lawsuit settlement proposal was brought forth to end claims that DFA, DMS and Dean Foods Co. conspired with certain companies including Land O’Lakes Inc. and Kraft Foods Inc. to control both the supply and purchase of Grade A raw milk.

Dean Foods Co. ended up settling on their own with the Class in May 2011 for $30 million, leaving DFA and DMS as the remaining defendants in the case.

The latest revision of the Dairy Farmers class action lawsuit settlement that was ultimately given preliminary approval included provisions to allow any farmer in opposition to the settlement to be able to opt-out and pursue litigation individually. Additionally, Judge Reiss said that injunctive relief in the latest settlement “is more extensive than the injunctive relief proposed in the parties’ 2014 Settlement.”

The approved milk class action settlement also includes increased limits and prohibitions imposed on the DFA and DMS, establishment of a Farmer Ombudsman position as well as an Advisory Council position, safeguards on milk testing and “certain required financial and management disclosures by DFA and DMS,” among others.

Judge Reiss required only a few modifications to the settlement but otherwise approved the conditions. The subclass members will be notified per the terms of the court order and a class action website for the lawsuit will be created by the Claims Administrator to further assist eligible Class Members in obtaining the necessary information to be included in the settlement.

A fairness hearing will be held to determine the final approval of the settlement on May 13, 2016.

More information about the Dairy Farmers class action lawsuit settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The non-DFA/DMS subclass is represented by BakerHosteler, Langrock Sperry & Wool LLP and Hoff Curtis PC.

The DFA/DMS subclass is represented by Cohen Milstein Sellers & Toll PLLC, the Law Offices of David A. Balto and Lynn Lynn Blackman & Manitsky PC.

The Dairy Farmers Milk Price-Fixing Class Action Lawsuit Settlement is Alice H. Allen, et al. v. Dairy Farmers of America Inc., et al., Case No. 5:09-cv-00230, in the U.S. District Court for the District of Vermont.

UPDATE: The Dairy Farmers class action settlement is now open! Click here to file a Claim Form or visit www.NortheastDairyClass.com for more details.