Smithfield Meals to pay $75 million in pork price-fixing settlement By Reuters

By Jonathan Stempel

(Reuters) – Smithfield Meals Inc has agreed to pay $75 million to settle a lawsuit by customers who accused the meat producer and a number of other rivals of conspiring to inflate costs within the $20 billion-a-year U.S. pork market by limiting provide.

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

The accord follows the decide’s Sept. 14 approval of an identical $20 million settlement between customers and JBS SA (OTC:), one among Smithfield’s largest rivals.

Smithfield didn’t instantly reply to requests for remark after market hours.

The Smithfield, Virginia-based firm, a unit of WH Group (OTC:) Ltd, denied legal responsibility however settled to keep away from the uncertainty, threat and value of litigation, settlement papers present.

A number of firms have confronted lawsuits in Minneapolis and Chicago additionally accusing them of inflating beef and hen costs.

Within the pork litigation, Smithfield beforehand reached settlements of $83 million with so-called “direct” purchasers comparable to Maplevale Farms and $42 million with industrial purchasers, a gaggle that features eating places.

A number of the different defendants are Hormel Meals Corp (NYSE:), Tyson Meals Inc (NYSE:) and information supplier Agri Stats Inc.

Smithfield agreed to offer cooperation that the plaintiffs’ attorneys mentioned will strengthen their circumstances in opposition to the remaining defendants.

The Biden administration has introduced plans to bolster competitors within the meat sector, amid concern that some meat packers may dictate costs and add to inflationary pressures.

The case is In re Pork Antitrust Litigation, U.S. District Court docket, District of Minnesota, No. 18-01776.