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Peanut farmers have reached a $50 million settlement with Birdsong Corp. to resolve antitrust claims against the company.
The settlement would resolve allegations that three large peanut-shelling companies violated antitrust laws by conspiring to lower the value of peanut crops. The peanut farmers have asked U.S. District Judge Raymond A. Jackson to grant preliminary approval to the proposed settlement deal.
In addition to providing $50 million in monetary benefits, Birdsong has agreed to cooperate with the peanut farmers as they continue their case against remaining defendants. In return, Birdsong gets to escape liability in the antitrust class action lawsuit and avoid the risks and costs associated with continuing the case.
“This cooperation here is even more valuable in light of the applicability of joint and several liability to plaintiffs’ claims — which at the point of the litigation means that Golden Peanut is jointly and severally liable for the full treble damages that plaintiff establishes at trial,” the peanut farmers said in their motion for preliminary approval.
“While plaintiffs believe that their case is strong, any complex antitrust litigation is inherently costly and risky, and this settlement mitigates that risk and protects the class.”
This is not the only settlement the peanut farmers have secured in connection to their case.
Last month, the farmers reached a $7.75 million settlement with Olam Peanut Shelling Co. — bringing the total settlement funds to $57.75 million. After Birdsong’s settlement, only Golden Peanut Co. remains as a defendant in the case.
The peanut farmers filed their antitrust class action lawsuit in September 2019, arguing that Olam Peanut Shelling, Birdsong and Golden Peanut conspired together to reduce the price of runner peanuts. This alleged price-fixing was reportedly made possible through the three companies’ significant monopoly. Together, the companies reportedly control around 80% of the peanut-shelling industry.
When peanut farmers sold their runner peanuts — a popular peanut variety used to make peanut butter and other snacks — to the defendants, they were allegedly forced to sell their crops for a much lower price than was reasonable.
After the defendants shelled the peanuts, they allegedly turned around and sold the products for a high price to candy companies and other manufacturers who use the peanuts.
The farmers contend the illegal conspiracy to “drive down the prices they paid America’s peanut farmers for their hard work” stemmed from a record year in 2012 that resulted in increased prices. In response to this drastic change in price, the companies allegedly agreed to conspire together to suppress and maintain the price of peanuts.
These practices reportedly violated federal antitrust laws and cause significant financial harm to peanut farmers who had worked hard for their crops.
If the claims are not resolved in the proposed settlements, the court will hear both sides in a trial scheduled to begin in January. Both Birdsong and Golden Peanut previously attempted to dodge the peanut farmers’ claims before the trial, though Judge Jackson denied these attempts in May.
The companies had attempted to lean on U.S. Department of Agriculture data, though Judge Jackson found this data to be both too flawed and too old to dismiss liability.
The peanut farmers filed their bid for Class certification in September, saying that allowing their claims to move forward as a class action would avoid “potentially hundreds of separate trials,” which would could quickly become “highly inefficient and wasteful.”
Similarly, the proposed settlement Class would include nationwide peanut farmers who sold raw harvester runner peanuts to Birdsong, Olam Peanut Shelling or Golden Peanut between Jan. 1, 2014, and Dec. 31, 2019.
If the settlement is given preliminary approval, settlement Class Members may have the opportunity to file a claim, exclude themselves or object to the deal. As always, Top Class Actions strives to keep our readers updated on this and other open settlements which could provide significant payouts.
What are your thoughts on the proposed peanut farmers settlement? Let us know what you think in the comment section below.
The peanut farmers and proposed settlement Class are represented by Wyatt B. Durrette Jr. and Kevin J. Funk of Durrette Arkema Gerson & Gill PC; W. Joseph Bruckner, Brian D. Clark, Simeon A. Morbey and Stephanie A. Chen of Lockridge Grindal Nauen PLLP; Kimberly A. Justice, Jonathan M. Jagher, Douglas A. Millen, Michael E. Moskovitz, Robert J. Wozniak and Brian M. Hogan of Freed Kanner London & Millen LLC; and Jeffrey J. Corrigan of Spector Roseman & Kodroff PC.
The Peanut Price-Fixing Class Action Lawsuit is In re: Peanut Farmers Antitrust Litigation, Case No. 2:19-cv-00463, in the U.S. District Court for the Eastern District of Virginia.
Read About More Class Action Lawsuits & Class Action Settlements:
69 thoughts onPeanut Farmers, Birdsong Reach $50M Price-Fixing Class Action Settlement
Is it to late to file a claim Crain Farms #3 LP
Sold Approximately 1600 Tons of Farmer Stock peanuts each year of 2017,2018,2019 crop year.
As for my earlier comment peanuts were sold to Birdsong
Any luck ever getting paid..I ever was yet either I was approved they said even sent W9 but nothing
I have made a claim they said I was approved but I haven’t heard anything can some one help me with my claim