Price-Fixing Litigation Heating Up

A recent court ruling is increasing the heat on price-fixing lawsuits against major meat-packers. 

A federal judge ruled Tyson Foods, JBS USA, Smithfield Foods, Seaboard Foods, and others will have to face lawsuits accusing them of conspiracy to fix prices and limit supplies.

ICYMI: In 2018, retail companies sued the meat-packers for fixing pork prices while “systematically controlling their output.” The lawsuit claimed the conspiracy went on for at least a decade. Court records showed plaintiffs incurred at least $1.4B in damages during the alleged period. 

Coordinated cuts: The judge dismissed allegations against Hormel Foods. That’s because the lawsuit claimed the companies used Agri Stats, a benchmarking company, to share non-public data with others, which allegedly allowed companies to compare profits and performance. Hormel was the only company that didn’t subscribe to Agri Stats.

All parties in the lawsuit have denied wrongdoing. In 2023, Agri Stats responded to a DOJ lawsuit, stating its reports “ultimately provide more chicken, pork, and turkey to consumers for less money.” But the judge ain’t buying it. 

Soundbite: “[The evidence] supports a reasonable inference of a price-fixing conspiracy and tends to exclude the possibility of mere independent action among co-defendants.” — U.S. District Judge John Tunheim