Federal judge approves $20M JBS USA pork price-fixing settlement

• Who: A judge has approved a $20 million pork price-fixing settlement.
• Why: The judge found the proposed settlement “fair and reasonable.”
• Where: The pork price-fixing settlement was heard by a Minnesota federal judge.

A Minnesota federal judge has given the green light to a $20 million settlement that will resolve allegations of pork price fixing against JBS USA Food Co., Law360 reports. 

The other settling defendants reportedly include JBS USA Food Co. Holdings and Swift Pork Co.

JBS USA pork price-fixing settlement ‘fair and reasonable,’ judge rules

U.S. District Judge John R. Tunheim approved the pork price-fixing settlement Sept. 14, finding the deal “fair and reasonable.”

One objector opposed the proposed pork price-fixing settlement, claiming the indirect purchaser class failed to adequately show that certification of the class action lawsuit was appropriate instead of handling purchasers’ claims on an individual basis.

Judge Tunheim found the additional materials the objector sought to include are not required for class certification and would “drive up the cost of litigation, increase the burdens on courts, and run counter to the purpose of the Rules of Civil Procedure and the policy of favoring settlements.”

The judge determined the indirect purchasers adequately showed consumers should be grouped as a class because they focused on common questions, including the question of whether the defendants engaged in a conspiracy to inflate the price of pork products.

“Because of the high costs and complexity of prosecuting this case for relatively little damages per class member, most class members would have no realistic day in court absent a class action,” Judge Tunheim explained.

Class actions say conspiracy started in 2009

In 2018, pork producers were hit with consumer class action lawsuits accusing them of restricting supply of pork since 2009 in order to artificially inflate the price of pork products. 

The pork price-fixing class action lawsuits were ultimately consolidated into a case titled In re: Pork Antitrust Litigation in August 2018 featuring three classes of pork buyers: direct purchasers, consumer indirect purchasers and commercial indirect purchasers who resold pork products.

JBS already reached a $24.5 million pork price-fixing settlement with consumers and companies that purchased pork products directly from JBS between Jan. 1, 2009, and Jan. 22, 2021.

Earlier this year, JBS agreed to pay more than $50 million to settle allegations it engaged in a beef price-fixing conspiracy.

What do you think about the allegations? Tell us about it in the comments!

The indirect purchasers are represented by Hagens Berman Sobol Shapiro LLP and Gustafson Gluek PLLC.

The pork price-fixing class action lawsuit is In re: Pork Antitrust Litigation, Case No. 0:18-cv-01776, in the U.S. District Court for the District of Minnesota.

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