Judge Gives Green Light to JBS SA’s $53.5M Settlement Over Beef Price Fixing Claims

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JBS SA Beef Price Fixing Settlement Overview:

• Who: A judge has given preliminary approval to a $53.5 million settlement between JBS USA Food Co. and 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 given the green light Minnesota federal court

A judge has given tentative approval to a $52.5 million class action deal between Brazilian meatpacking giant JBS SA and wholesalers, who alleged the company took part in an industry wide beef price fixing scheme. 

On Feb. 17, Judge John R. Tunheim granted preliminary approval to the deal in a Minnesota federal court, Bloomberg reports.

The multimillion dollar JBS beef settlement is the first in a wave of antitrust litigation against leaders in the meatpacking industry in the United States: Tyson Foods Inc., JBS SA, Cargill Inc. and National Beef Inc.

The class action lawsuit was originally filed by grocery stores and wholesalers in June 2020. The plaintiffs alleged the four defendants — who control 80 percent of the U.S. meatpacking industry — worked together since 2015 to suppress U.S. beef supplies in order to drive up the price of beef.

The settlement 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. 

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. 

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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