JBS, indirect buyers reach $25M settlement over beef price-fixing allegations

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JBS settlement overview:

• Who: JBS USA Food Co. agreed to pay a $25 million class action settlement.
• Why: The proposed JBS settlement will resolve claims that the meat processor conspired to fix the price of beef products, causing the indirect purchaser class to pay artificially inflated prices.
• Where: The beef price fixing class action lawsuit was filed in Minnesota federal court.

Meat processor JBS USA Food Co. will pay a $25 million settlement to resolve allegations it conspired to fix the prices of beef products, Law360 reports.

The indirect purchaser plaintiffs filed a motion April 14 urging a Minnesota federal judge to approve the $25 million JBS settlement. They told the judge the proposed class action settlement was the result of arm’s length negotiations and it “achieves an excellent result” for the proposed class.

If approved, the JBS settlement would allow the meat processor to escape multidistrict litigation accusing JBS, Tyson, Cargill and National Beef of engaging in a beef price-fixing conspiracy since at least 2015 that resulted in artificially inflated beef prices.

According to the beef price-fixing class action lawsuit, the four companies allegedly colluded at industry events and trade association conferences in violation of federal antitrust law.

JBS settlement requires cooperation in prosecution of remaining defendants

JBS has also reportedly agreed to cooperate in the prosecution of the remaining antitrust claims against the other defendants by providing detailed descriptions of facts relevant to the case, providing information necessary to facilitate class notice and settlement administration and making several current employees available for depositions and/or trial witnesses if the case reaches that stage.

The proposed JBS settlement class includes “all personas and entities who [from Jan. 1, 2015 until the date the settlement is preliminarily approved] indirectly purchased for business use in commercial food preparation in the United States, from any of the defendants or their respective subsidiaries and affiliates, boxed or case-ready beef from Fed Cattle, excluding ground beef made exclusively from culled cows.”

In February 2022, a JBS and a class of direct beef purchasers reached a $52.5 million settlement.

Earlier this year, Smithfield reached a $75 million pork price fixing settlement with a class of indirect pork purchasers. 

What do you think about the proposed settlement? Tell us your thoughts in the comments!

The plaintiffs are represented by Shawn M. Raiter of Larson King LLP, Blaine Finley of Cuneo Gilbert & LaDuca LLP and Sarah Sterling Aldridge of Barrett Law Group PA.

The beef price-fixing class action lawsuit is In re: Cattle and Beef Antitrust Litigation, Case No. 0:22-md-03031-JRT-JFD, in the U.S. District Court for the District of Minnesota.

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