April 20, 2023

JBS SA to pay US$235 million in beef price-fixing settlement

JBS SA has agreed to pay US$25 million to commercial beef purchasers, who accused JBS of conspiring with industry rivals to limit market supply in order to keep prices artificially high, XM News reported.

The proposed settlement in federal court in Minnesota state, US was revealed by plaintiffs' lawyers representing a class of businesses that purchased beef for food preparation since 2015.

It is the second settlement reached in the case by the Brazilian beef giant and its US subsidiaries, following an agreement last year to pay US$52.5 million to grocers and other plaintiffs in the "direct" beef purchaser class.

The new agreement, which is subject to judicial review and approval, requires JBS to cooperate in ongoing cases against corporate defendants who have not settled, such as Cargill and Tyson Foods.

JBS and its lawyers did not immediately respond to messages seeking comment on Monday. As part of the settlement, JBS denied any liability.

Lawyers for Cargill and Tyson, as well as company representatives, either declined to comment or did not respond immediately to messages seeking comment.

JBS and other suppliers were sued in a series of price-fixing cases in various meat markets. JBS has spent tens of millions of dollars settling claims from pork buyers.

In the beef case, commercial plaintiffs such as Wisconsin-based sandwich and soup shop Erbert & Gerbert's Inc claimed JBS and other meat packers conspired to fix beef prices since 2015. The case is In re: Cattle and Beef Antitrust Litigation, U.S. District Court, District of Minnesota, No. 0:22-md-03031-JRT-JFD.

-      XM News