JBS Agrees To $52.5M Settlement To Resolve Claims It Schemed To Inflate Price Of Beef

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• JBS Beef Price Inflation Class Action Settlement Overview: 
• Who: JBS USA Food Co. came to a $52.5 million settlement agreement with a class of direct buyers.
• Why: Direct buyers claim JBS engaged in anti-competitive conduct by working with other meat processing companies to inflate the price of beef by restricting supply.
• Where: The proposed settlement was filed in Minnesota federal court.

JBS USA Food Co. has agreed to a $52.5 million settlement to resolve direct buyers’ claims it was involved in an anticompetitive scheme to restrict beef supplies and hike up prices. 

The settlement was the first reached in a series of antitrust litigation surrounding the claims. It will provide monetary relief to the direct buyers and includes an agreement by JBS to assist in helping the direct buyers prosecute defendants who choose not to settle. 

“This is the first settlement for the DPP class and the first public settlement overall in any of the coordinated, complex beef antitrust cases,” the buyers said. “This icebreaker settlement represents an excellent recovery for the class, both in terms of financial relief to class members and benefit to those class members in pursuing their claims against other defendants.”

The $52.5 million will be paid into a settlement fund that will be distributed to the class of direct buyers in addition to helping pay for litigation fees and settlement administration and notice. 

The direct buyers filed their class action lawsuit in June 2020, accusing JBS of participating in a widespread scheme — along with Cargill, National Beef Packing Co. and Tyson Foods — to restrict the supply of beef in order to raise prices and increase their profits, Law360 reports. 

JBS To Cooperate With Direct Buyers To Help Prosecute Others

As part of its cooperation with direct buyers, JBS will provide them with structured data, an eight-hour attorney proffer where it will “summarize the principal facts known to it,” relevant data documents and contact informations to assist with settlement notice and administration, witness interviews and depositions, among other things, according to the proposed settlement. 

JBS unsuccessfully attempted to get the class action lawsuit dismissed in February of last year, Law360 reports.  

This is not the first time JBS has found itself on the receiving end of claims it participated in anti-competitive conduct. The company agreed to pay $20 million last year to resolve claims it worked with other companies to increase pork prices for consumer indirect purchasers. 

Have you purchased beef products from JBS? Let us know in the comments! 

The direct buyers are represented by Daniel E. Gustafson, Daniel C. Hedlund, Michelle J. Looby, Joshua J. Rissman, Brittany Resch and Dennis J. Stewart of Gustafson Gluek PLLC, Adam J. Zapala, Elizabeth T. Castillo, Reid W. Gaa and Alexander E. Barnett of Cotchett Pitre & McCarthy LLP; Jason S. Hartley of Hartley LLP; and Megan E. Jones and Timothy S. Kearns of Hausfeld LLP.

The JBS Beef Price Inflation Class Action Settlement is In re: Cattle and Beef Antitrust Litigation, Case No. 0:20-cv-01319, in the U.S. District Court for the District of Minnesota.

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