Tyson Foods and Cargill have agreed to pay a combined US$ 87.5 million to settle a class-action lawsuit filed by consumers who accused them of conspiring to inflate beef prices in the United States by restricting supply.
The preliminary settlements were filed in a federal court in Minnesota and still require judicial approval. Tyson, the largest meat processor in the U.S., will pay US$ 55 million, while Cargill will contribute US$ 32.5 million. These are the first settlements reached with consumers in the litigation that began in 2019.
Both companies agreed to cooperate with plaintiffs in ongoing cases against JBS USA and National Beef Packing, which are also accused of participating in price manipulation. All the companies have denied any wrongdoing.
The lawsuit covers consumers who indirectly purchased beef products between August 2014 and December 2019 from retailers such as Walmart and Costco, although the retailers themselves are not named as defendants. Plaintiffs’ attorneys estimate total damages at US$ 1.9 billion.
Last week, Tyson agreed to pay US$ 85 million to resolve a similar case related to the pork market. Earlier this year, JBS reached an US$ 83.5 million settlement in a price-fixing lawsuit brought by producers and other claimants, though not by consumers.
Source: Forbes/Reuters
