Flue-Cured Tobacco Class Action Settlement

U.S. Tobacco Cooperative Inc., formerly known as Flue-Cured Tobacco Cooperative Stabilization Corporation, has reportedly agreed to a $24 million class action settlement involving claims made by current and former members over reserve funds.

If you were a shareholder or member of U.S. Tobacco Cooperative between June 1, 1946 and Sept. 13, 2017, or if you were an heir or legal representative of a shareholder or member, you may be entitled to a payment from the Flue-Cured Tobacco class action settlement.

The proposed Flue-Cured Tobacco settlement will resolve a class action lawsuit that claims U.S. Tobacco Cooperative kept accumulating funds from Class Members after the federal Tobacco Price Support Program ended, at which point U.S. Tobacco Cooperative no longer served its purpose.

According to the Flue-Cured Tobacco class action lawsuit, U.S. Tobacco administered the federal price support program for flue-cured tobacco for the Commodity Credit Corporation, which is a division of the U.S. Department of Agriculture, before the Fair and Equitable Tobacco Reform Act of 2004 was passed.

Under the federal price support program, the Commodity Credit Corporation made loans to U.S. Tobacco, which U.S. Tobacco used to buy tobacco from members whose tobacco did not sell at auction. When U.S. Tobacco later sold the tobacco that had been purchased with the loans, the proceeds were used to repay Commodity Credit Corporation for the loans. U.S. Tobacco also collected assessment fees from growers, which were used to reimburse the government for losses suffered under the federal price support program.

The plaintiffs claim that U.S. Tobacco accumulated reserve funds thorough its members and that the reserve funds should be distributed to members. They assert that U.S. Tobacco acted unreasonably by failing to distribute the reserve funds. Further, the Flue-Cured Tobacco class action lawsuit alleges that the purpose of U.S. Tobacco ceased to exist once the federal price support program ended and that the company should be dissolved and its assets distributed to members and shareholders.

U.S. Tobacco denies the allegations and maintains that it has done nothing wrong.

The deadline for Class Members to exclude themselves from or object to the Flue-Cured Tobacco settlement is Dec. 20, 2017.

Who’s Eligible

Class Members of the flue-cured tobacco settlement include anyone who is an individual, proprietorship, corporation, partnership or other entity that is or was a shareholder and/or member of U.S. Tobacco at any time since June 1, 1946; or anyone who is an heir, legal representative, executor, power-of-attorney, successor, assign or other individual who acts for or on behalf of the shareholder and/or member with respect to U.S. Tobacco and/or the settled claims.

Potential Award

To Be Determined. Class Members may file a Group 1 or a Group 2 claim.

Group 1 payments will depend on the total pounds of flue-cured tobacco the Class Member marketed and sold between June 1, 1946 and Sept. 13, 2017.

Group 2 payments will depend on the number of years in which the Class Member marketed and sold flue-cured tobacco between June 1, 1946 and Sept. 13, 2017.

Proof of Purchase

Class Members will be asked to provide copies of any documentation they may have, including their U.S. Tobacco or Stabilization membership number, documents that help determine the total pounds of flue-cured tobacco the Class Member or their predecessor marketed and sold during the Class Period and/or documents that help determine the total number of crop years in which the Class Member or their predecessor marketed and sold flue-cured tobacco during the Class Period.

Heirs or representatives will be asked to provide documents showing they are the legal heir or representative of the deceased Class Member.

NOTE: Class Members may submit claims even if they don’t have documentation; however, there is no guarantee that their claims will be approved.

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

5/26/2018

Case Name

Speaks v. U.S. Tobacco Cooperative Inc., Case No. 5:12-cv-00729-D, in the U.S. District Court for the Eastern District of North Carolina

Final Hearing

1/19/2018

Settlement Website

www.FlueCuredTobaccoSettlement.com

Claims Administrator

Settlement Claims Administrator – 5773
P.O. Box 2612
Minneapolis, MN 55021-9612
1-866-458-3207

Class Counsel

Gary K. Shipman
William Wright
SHIPMAN & WRIGHT LLP

N. Leo Daughtry
Kelly Daughtry
DAUGHTRY WOODARD LAWRENCE & STARLING LLP

Defense Counsel

Derek L. Shaffer
QUINN EMMANUEL URQUHART & SULLIVAN LLP

Lee M. Whitman
Paul J. Puryear
WYRICK ROBBINS YATES & PONTON LLP