Smithfield Foods to pay $75 mln in pork price-fixing settlement

Author of the article: Smithfield Foods Inc has agreed to pay $75 million to settle a lawsuit by consumers who accused the meat producer and several competitors of conspiring to inflate prices in the $20 billion-a-year U.S. pork market by limiting supply. A preliminary settlement was filed on Tuesday night with the federal court in…
Smithfield Foods to pay $75 mln in pork price-fixing settlement

Author of the article:

Smithfield Foods Inc has agreed to pay $75 million to settle a lawsuit by consumers who accused the meat producer and several competitors of conspiring to inflate prices in the $20 billion-a-year U.S. pork market by limiting supply.

A preliminary settlement was filed on Tuesday night with the federal court in Minneapolis, and requires approval by U.S. District Judge John Tunheim.

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

The accord follows the judge’s Sept. 14 approval of a similar $20 million settlement between consumers and JBS SA , one of Smithfield’s largest rivals.

Smithfield did not immediately respond to requests for comment after market hours.

The Smithfield, Virginia-based company, a unit of WH Group Ltd, denied liability but settled to avoid the uncertainty, risk and cost of litigation, settlement papers show.

Several companies have faced lawsuits in Minneapolis and Chicago also accusing them of inflating beef and chicken prices.

In the pork litigation, Smithfield previously reached settlements of $83 million with so-called “direct” purchasers such as Maplevale Farms and $42 million with commercial purchasers, a group that includes restaurants.

Some of the other defendants are Hormel Foods Corp, Tyson Foods Inc and data provider Agri Stats Inc.

Smithfield agreed to provide cooperation that the plaintiffs’ lawyers said will strengthen their cases against the remaining defendants.

The Biden administration has announced plans to bolster competition in the meat sector, amid concern that some meat packers could dictate prices and add to inflationary pressures.

The case is In re Pork Antitrust Litigation, U.S. District Court, District of Minnesota, No. 18-01776. (Reporting by Jonathan Stempel in New York Editing by Chris Reese)

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Trudeau Says China ‘Playing’ Western States Against Each Other
Read More

Trudeau Says China ‘Playing’ Western States Against Each Other

Author of the article: Bloomberg News Ilya Banares (Bloomberg) — Canadian Prime Minister Justin Trudeau said China has been “playing” Western states against each other and that democracies should present a “united front” in response. “There’s been a bit of competition amongst friends because we’re capitalist democracies trying to do well, especially given the extraordinary…
Brace for More Russian Plot Twists, Geopolitical Strategist Says
Read More

Brace for More Russian Plot Twists, Geopolitical Strategist Says

Author of the article: Bloomberg News Vildana Hajric and Michael P. Regan (Bloomberg) — When assessing what a political leader is going to do, Marko Papic doesn’t give much weight to the person’s desires. Rather, he looks at what he calls “material constraints.” In other words, what factors will limit the leader’s ability to get…
Wall St opens lower as Walmart warning rattles retail shares
Read More

Wall St opens lower as Walmart warning rattles retail shares

Author of the article: Wall Street’s main indexes opened lower on Tuesday after Walmart’s profit warning heightened fears in the retail sector that consumers were cutting back on discretionary spending in the face of decades-high inflation. The Dow Jones Industrial Average fell 40 points, or 0.13%, at the open to 31,950.04. The S&P 500 opened…
Kremlin says Russia is reliable gas supplier, blames Europe for problems
Read More

Kremlin says Russia is reliable gas supplier, blames Europe for problems

This advertisement has not loaded yet, but your article continues below. Author of the article: Article content Kremlin spokesman Dmitry Peskov on Thursday said that all difficulties with supply of Russian natural gas to Europe are caused by Western restrictions. In a call with reporters, Peskov said that Russia remains “a very important and indispensable…