$25M Settlement Reached in Potato Antitrust Class Actions

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Last week, a preliminary class action settlement agreement was reached in the antitrust litigation accusing potato growers, including the United Potato Growers of America, of entering into agreements to limit the nation’s potato supply and drive up the price.

Plaintiffs, including direct and indirect purchasers, alleged in their class action lawsuits, later folded into a multidistrict litigation (MDL) case, that United Potato Growers and a number of chapters entered into agreements to limit the potato crop and divert the harvest into non-fresh uses to limit the supply of potatoes for the fresh market. The plaintiffs claimed this violated the Sherman Act.

U.S. District Judge B. Lynn Winmill approved the preliminary class action settlement agreement last week. As part of the deal, United Potato growers and various chapters will agree to a seven-year consent order to not enter into similar acreage management agreements. According to court documents, potato purchasers will save between $1.6 billion to $2 billion over seven years under the terms of the class action settlement.

“The estimated value of the injunctive relief under the consent order — on average, more than $250 million annually — and the procedural protections it provides to the class … offers substantial value to the settlement class,” according to the potato antitrust class action settlement documents.

The potato antitrust settlement will apply to consumers in Arizona, California, Florida, Iowa, Kansas, Massachusetts, Michigan, Minnesota, Nevada, New York, North Carolina, Tennessee, Vermont and Wisconsin who purchased potatoes from any retailer between October 2004 to April 2015. The parties have agreed to $5.5 million for these consumers. A website and 800 number will be developed and ads will be placed in People magazine and on Internet banner ads notifying potential Class Members of the settlement.

More information about the potato antitrust class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The direct purchaser plaintiffs are represented by James J. Pizzirusso, Michael Lehmann, Art Bailey Jr., Michael D. Hausfeld and Jeannine M. Kenney of Hausfeld LLP, Philip Gordon and Bruce S. Bistline of Gordon Law Offices, Stanley D. Bernstein, Ronald J. Aranoff, Christian Siebott and Gabriel G. Galletti of Bernstein Liebhard LLP, Eugene A. Spector, Jay S. Cohen and Jeffrey L. Spector of Spector Roseman Kodroff & Willis PC, Bruce L. Simon, Aaron M. Sheanin and Daniel L. Warshaw of Pearson Simon Warshaw Penny LLP, Bonny E. Sweeney and Carmen A. Medici of Robbins Geller Rudman & Dowd LLP, Mindee J. Reuben of Weinstein Kitchenoff & Asher LLC, Jay Himes of Labaton Sucharow LLP, Allan Steyer of Steyer Lowenthal Boodrookas Alvarez & Smith LLP, Steven A. Kanner and Douglas A. Millen of Freed Kanner London & Millen LLC, Mark Griffin of Keller Rohrback LLP, Daniel Cohen of Cuneo Gilbert & LaDuca LLP, Benjamin Bianco of Frank & Bianco LLP, Arthur N. Bailey Sr. of Arthur N. Bailey & Associates and Kimberly A. Kralowec of the Kralowec Law Group.

The indirect purchaser plaintiffs are represented by Paul F. Novak, Elizabeth McKenna and Charles Slidders of Milberg LLP, and Susan G. Kupfer and Brian S. Umpierre of Glancy Prongay & Murray LLP.

The Potato Growers Antitrust Class Action Lawsuit is In re: Fresh and Process Potatoes Antitrust Litigation, Case No. 4:10-md-02186, in the U.S. District Court for the District of Idaho.

UPDATE: Claim filing instructions for the potato antitrust class action settlement are now available! Click here or visit https://www.PotatoesAntitrustSettlement.com/ for details.