Tyson, Cargill agree to settle beef price-fixing claims for $87.5M

Beef price-fixing settlement overview:

• Who: Tyson Foods Inc. and Cargill Inc. have agreed to settle beef price-fixing claims.
• Why: The companies agreed to pay a combined $87.5 million to resolve claims they conspired to limit competition and raise the price of beef.
• Where: The beef price-fixing settlement was filed in Minnesota federal court.
• How to Make a Claim: Details on how to file a claim were not immediately available. Sign up for our free newsletter to receive claim-filing instructions once they’re available, and check out what settlements are paying out this month. 

Tyson Foods and Cargill have agreed to pay a combined $87.5 million to settle a class action lawsuit accusing them of conspiring to restrict competition and inflate beef prices for consumers.

Counsel filed motions to preliminarily approve the settlements in Minnesota federal court on Oct. 6.

The settlements follow years of litigation between the plaintiffs and Tyson and Cargill. Several other defendants, namely, JBS USA Food Co., Swift Beef Co., JBS Packerland Inc. and National Beef Packing Co. LLC, have not settled and will continue to litigate.

Tyson will pay $55 million and Cargill $32.5 million, creating an $87.5 million fund to cover administration costs, attorneys’ fees and expenses, service awards and payments to eligible class members.

The lawsuit alleged that various major beef processors, including Tyson and Cargill, conspired to limit competition, allocate markets and raise prices, increasing profits at the expense of consumers. 

Tyson and Cargill deny wrongdoing but agreed to settle to avoid the costs and risks of continued litigation.

Beef price-fixing settlement pays consumers who purchased beef

Consumers who bought beef products for personal use in certain states between Aug. 1, 2014, and Dec. 31, 2019, may qualify for a cash payment. 

Eligible class members include individuals or entities that indirectly purchased fresh or frozen beef made from chuck, loin, rib or round primal cuts at grocery stores, supermarkets or meat markets for personal consumption in states such as California, Florida, Illinois, Minnesota and New York.

Excluded products include USDA Prime, organic, 100% grass-fed, Wagyu or American-Style Kobe Beef; specialty beef such as antibiotic-free, kosher, halal or certified humane; processed beef that is ground, marinated, seasoned, flavored, breaded or cooked; and products containing ingredients other than beef, except for salt or water.

Claimants will receive a pro rata cash payment from the net settlement fund. The settlement administrator will determine each class member’s payment amount by calculating the number of beef purchases they claim compared to the total number of beef purchases all class members claim.

Class members will need to submit a claim form to receive a payment. The online and PDF claim forms will be available on the settlement website after the settlement receives preliminary approval. Class members must submit or postmark their claim form by the deadline, which will be announced at a later date.

In another recent Tyson Foods settlement, the company agreed to pay $85 million to resolve claims it conspired to fix pork prices. Under the agreement, Tyson will contribute the amount to a settlement fund covering payments to the consumer indirect purchaser class and related legal fees and expenses.

What do you think of the allegations made in this Tyson Foods settlement? Tell us in the comments.

The plaintiffs are represented by lawyers from Hagens Berman Sobol Shapiro LLP and Lockridge Grindal Nauen PLLP.

The beef price-fixing class action lawsuit is In re: Cattle and Beef Antitrust Litigation, Case No. 0:22-md-03031, in the U.S. District Court for the District of Minnesota.

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