April 14, 2023

 

US judge approves US$75 million settlement in price-fixing case against Smithfield

 

A US federal judge has approved a US$75 million settlement between major pork producer Smithfield Foods and a group of consumers, who accused the company of conspiring to restrict pork supplies in order to keep prices artificially high, US News reported.

 

The resolution was called "fair, reasonable, and adequate" by US District Judge John Tunheim in Minneapolis. Out of millions of potential class members, only three opted out, and none objected.

 

The case is part of ongoing legal action regarding inflated prices in the US$20 billion annual pork market.

 

Smithfield and rival firm JBS SA agreed to support consumers' claims against six other non-settling defendants including Hormel Foods Corp and Tyson Foods Inc.

 

Smithfield previously paid US$83 million to settle claims from "direct" purchasers such as Maplevale Farms Inc in New York and John Gross & Company Inc in Pennsylvania, as well as US$42 million to restaurant and other commercial purchasers. JBS paid a $20 million settlement to pork consumers last year.

 

A spokesperson for Smithfield and an attorney for the company at Gibson, Dunn & Crutcher did not immediately respond to messages seeking comment.

 

Smithfield, based in Virginia state, is a subsidiary of the Hong Kong-listed WH Group Ltd.

 

Smithfield and JBS agreed to cooperate in the consumers' claims against six other non-settling defendants, including Hormel Foods Corp and Tyson Foods Inc, as part of the settlements.

 

A Tyson spokesperson declined to comment, and a Hormel representative did not immediately respond to messages seeking comment. Both have also denied the allegations of price fixing.

 

In a separate order, the judge awarded the plaintiffs' firms representing the consumer class nearly US$25 million in legal fees. The court-appointed consumer class counsel, lawyers from plaintiffs' firms Hagens Berman Sobol Shapiro and Gustafson Gluek, did not immediately respond to messages seeking comment.

 

In a court filing in January, the consumer class attorneys stated that they had spent more than 37,000 hours pursuing antitrust claims over a four-year period.

 

The case is In re Pork Antitrust Litigation, No. 18-01776 in the United States District Court for the District of Minnesota.

 

-      US News