JBS and Indirect Buyers Reach $25M Settlement Over Beef Price-Fixing Allegations

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(Photo Credit: Ildi Papp/Shutterstock) JBS Settlement Overview: Who: JBS USA Food Co. has agreed to pay a $25 million class action settlement. Why: The proposed JBS settlement will resolve allegations that the meat processor conspired to fix the price of beef products, causing the indirect buyer class to pay artificially inflated prices. Where: The beef price-fixing class action lawsuit was filed in federal court in Minnesota.

Meat processor JBS USA Food Co. will pay $25 million to settle allegations that it conspired to fix prices for beef products, Law360 reports.

The indirect purchaser plaintiffs filed a petition on April 14 urging a federal judge in Minnesota to approve the $25 million JBS settlement. They told the judge that the proposed class action settlement was the result of arm’s length negotiations and that it achieves a great outcome for the proposed class.

If approved, the JBS settlement would allow the meat processor to escape multidistrict litigation accusing JBS, Tyson, Cargill and National Beef of engaging in a beef price-fixing conspiracy since at least 2015 that has led to an artificial increase in beef prices.

According to the beef price-fixing class action lawsuit, the four companies allegedly colluded at industry events and trade association conferences in violation of federal antitrust law.

JBS settlement requires cooperation in prosecution of remaining defendants

JBS also reportedly agreed to cooperate in prosecuting the remaining antitrust claims against the other defendants by providing detailed descriptions of the facts relevant to the case, providing information necessary to facilitate the administration of the class notices and settlement, and putting several current employees available for depositions and/or trial witnesses if the case comes to that stage.

The proposed JBS settlement class includes all persons and entities that [from Jan. 1, 2015 until the date the settlement is preliminarily approved] indirectly purchased for commercial purposes in the preparation of commercial foods in the United States, from one of the defendants or their respective subsidiaries and affiliates, canned or ready-to-eat beef from Fed Cattle, at the exclusion of ground beef made exclusively from culled cows.

In February 2022, a JBS and a class of direct beef buyers reached a $52.5 million settlement.

Earlier this year, Smithfield struck a $75 million hog price-fixing deal with a class of indirect pork buyers.

What do you think of the rules proposed by JBS? Let us know your thoughts in the comments!

Plaintiffs are represented by Shawn M. Raiter of Larson King LLP, Blaine Finley of Cuneo Gilbert & LaDuca LLP and Sarah Sterling Aldridge of Barrett Law Group PA.

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

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