$9.75M Seaboard settlement resolves pork price-fixing claims

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Seaboard pork price-fixing settlement overview: 

• Who: Seaboard Foods LLC has agreed to pay $9.75 million to resolve claims it worked with other pork producers to inflate the price of pork products. 
• Why: The settlement agreement is part of a multidistrict litigation involving a number of pork producers accused of colluding to fix the price of pork products. 
• Where: The multidistrict litigation is in Minnesota federal court.

Seaboard Foods LLC has agreed to pay $9.75 million as part of a settlement to resolve claims the pork producer colluded with other companies to engage in pork price fixing and inflation. 

The settlement brings the total compensation amount to $111 million for a class of direct pork purchasers involved in multidistrict litigation (MDL) over the antitrust claims, according to Law360. 

Seaboard, which maintains it has not committed any wrongdoing, will reportedly pay the settlement funds to a newly certified class consisting of potentially thousands of pork buyers. 

The pork producer — which has been released from “any and all claims” — will also be required to cooperate with direct purchasers during their ongoing legal battle with the pork industry that revolves around their price-fixing claims, Law360 reports. 

“This agreement to cooperate is significant because pursuant to the Sherman Act, the remaining defendants are jointly and severally liable for any damages resulting from Seaboard’s Pork sales to (direct purchaser plaintiffs) during the class period,” the direct purchasers said.

Direct purchasers argue largest U.S. pork producers are working together to limit supply, fix price of pork products

The direct purchasers previously agreed to a $77 million settlement with Smithfield Foods Inc. and a $24.5 million settlement with JBS USA Food Co. over the pork price-fixing claims, Law360 reports. 

The claims date back to June 2018, at which time the direct purchasers first argued some of the largest pork producers in the U.S. were working together to limit supply and fix the price of pork products, in an alleged violation of both federal and state antitrust laws. 

The pork companies involved in the MDL represent more than 80% of the wholesale pork market, according to court documents for the litigation, which includes companies and direct purchasers from across the U.S., according to Law360. 

In another deal, Smithfield agreed to pay $75 million earlier this year to resolve claims it worked with other pork producers to raise and fix prices for pork products, leading to consumers being overcharged for pork. 

Have you been overcharged for pork products? Let us know in the comments.

The Seaboard pork price-fixing case is In re: Pork Antitrust Litigation, Case No. 0:18-cv-01776, in the U.S. District Court for the District of Minnesota.

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