Judge certifies three pork buyer classes in price-fixing multidistrict litigation

Pork price-fixing multidistrict litigation overview: 

• Who: A federal judge in Minnesota has granted class certification to a trio of direct and indirect buyers in multidistrict litigation over claims against the largest American pork producers. 
• Why: The pork producers are accused of conspiring to fix the price of  pork by allegedly limiting supply in order to artificially inflate cost.
• Where: The multidistrict litigation is in Minnesota federal court.

A federal judge in Minnesota has certified three classes of direct and indirect buyers involved in a multidistrict litigation of claims the largest American pork product producers conspired to fix pork prices. 

The judge granted certification to classes of direct purchasers, consumer indirect purchasers, and commercial indirect purchases, according to a 69-page memorandum opinion dated March 29. 

“Class plaintiffs all seek class certification for a per se antitrust claim: that they overpaid for pork due to the defendants’ conspiracy to restrict supply and stabilize prices in the pork market,” the judge said, in his opinion and order. 

The pork producers, including Tyson Foods Inc., Triumph Foods LLC, Hormel Foods LLC, Agri Stats Inc., Seaboard Corp., and Clemens Food Group LLC, among others, were first accused in 2018 of conspiring to limit the pork supply in order to artificially inflate prices. 

The purchasers groups sought class certification in May, at which time they estimated that the classes would consist of thousands of direct purchaser entities, millions of consumer direct purchasers, and thousands of commercial indirect purchasers. 

Purchaser classes able to meet predominance requirements, says judge

The judge, meanwhile, said he determined that the proposed classes were able to meet the predominance requirement and that “common evidence” could be used to prove the antitrust allegations. 

Common evidence could also be used to prove the purchasers suffered injuries as a result of the alleged price-fixing allegations, according to the opinion and order. 

“The Court must consider whether common evidence can be used to prove the existence of the alleged antitrust conspiracy. Defendants do not dispute that common evidence can be used here,” the order states. 

Last September, a federal judge in Minnesota gave his stamp of approval to a $20 million settlement made to resolve claims JBS USA Food Co. and Swift Pork Co. worked to fix the price of pork. 

Also last year, Smithfield Foods agreed to pay $42 million to a group of restaurants to resolve claims the company colluded with other pork companies in an alleged price-fixing scheme. 

Do you believe the American pork producers worked together to fix pork prices? Let us know in the comments! 

The Pork price-fixing multidistrict litigation 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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