Major potato processors conspired to fix prices, class action claims

Potato class action lawsuit overview: 

• Who: Plaintiff Alexander Govea filed a class action lawsuit against the National Potato Promotion Board, potato processors Lamb Weston, McCain Foods, JRS and Cavendish, and market research and technology company Circana. 
• Why: Govea claims the potato processors have, with Circana’s help, been conspiring to fix the price of frozen potato products since as early as Jan. 1, 2021. 
• Where: The potato prices class action lawsuit was filed in Illinois federal court.

A new class action lawsuit alleges the four largest potato processors in the U.S. conspired to raise, stabilize, fix and/or otherwise manipulate the market prices for frozen potatoes. 

Plaintiff Alexander Govea’s class action lawsuit claims Lamb Weston, McCain Foods, JRS and Cavendish have been conspiring to fix frozen potato prices since as early as Jan. 1, 2021. 

Govea argues the alleged price fixing conspiracy has caused consumers like himself and others to pay “supracompetitive” prices for frozen potato products at retail. 

“Due to the potato cartel’s acts, in defiance of basic economic principles, (frozen potato product) prices have soared compared to input costs during the conspiracy period,” the potato class action lawsuit says. 

Govea wants to represent a nationwide class of natural consumers, businesses, entities and corporations who indirectly purchased Lamb Weston, McCain Foods, JRS and/or Cavendish frozen potato products since Jan. 1, 2021. 

The complaint, in the alternative, seeks to represent a subclass of persons, businesses, entities and corporations who indirectly purchased the frozen potato products beginning Jan. 1, 2021, in states where an Illinois brick repealer statute has been passed. 

Potato processors used data aggregation services to fix frozen potato prices, class action says

Govea argues the potato processors artificially raised prices for frozen potato products by using potato price data aggregation services provided by market research company Circana, and with collective action through trade associations like the National Potato Promotion Board (NPPB). 

“Armed with the same access to each other’s data on pricing and other sensitive information, as well as with a direct line of communication to each other, the potato cartel moves prices skyward in lockstep – harming all purchasers of potatoes in the process,” the potato class action says. 

Govea claims  Lamb Weston, McCain Foods, JRS, Cavendish, the NPPB and Circana are guilty of unjust enrichment and violating the Sherman Act and multiple state antitrust laws.

The plaintiff demands a jury trial and requests declaratory and injunctive relief and an award of damages for themselves and all class members. 

Target, Lowe’s, American Airlines, General Motors, Lumen Technologies and U.S. Foods filed a separate class action lawsuit involving price-fixing claims earlier this year against dozens of pharmaceutical companies accused of engaging in an unlawful conspiracy to fix the price of hundreds of generic drugs.

Have you purchased a frozen potato product made by Lamb Weston, McCain Foods, JRS or Cavendish? Let us know in the comments.

The plaintiff is represented by Jeffrey K. Brown and Blake Hunter Yagman of Leeds Brown Law, P.C. 

The Potato class action lawsuit is Govea, et al. v. National Potato Promotion Board, et al., Case No. 1:24-cv-11816, in the U.S. District Court for the Northern District of Illinois.

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