MINNEAPOLIS –In the latest development in ongoing antitrust litigation in the pork industry, Smithfield Foods agreed to a $75 million settlement in cases that accused the company and competitors of allegedly conspiring to fix prices for pork since at least 2009.
The latest settlement was filed on Sept. 27 with the US District Court of Minnesota and needed approval by Judge John R. Tunheim.
The settlement was originally announced Aug. 5.
“While we deny any liability in these cases and believe that our conduct has always been lawful, we decided that it was in the best interests of the company to negotiate a settlement,” said Jim Monroe, vice president of corporate affairs for Smithfield, in August. “This settlement eliminates a substantial portion of our remaining exposure in the antitrust litigation for an amount that we believe is in the best interest of our company, as well as our employees, customers and consumers. It significantly reduces the distraction, expense, exposure and inconvenience of protracted litigation, and it allows us to focus on executing the long-term strategy of our business.”
The court recently accepted a similar settlement by JBS SA, for $20 million in a pork case dealing with consumers.
In July, Smithfield Foods finalized a $42 million settlement with foodservice operators who indirectly purchased pork from the meat producer. Last year, the company also came to an agreement on an $83 million settlement on a case involving direct-purchaser class claims involving multiple companies in the pork industry.
Other defendants in similar pork litigation include Hormel Foods Corp., Tyson Foods Inc. and data provider Agri Stats. There is still ongoing litigation regarding commercial and other indirect pork purchasers.
All recent coverage of price-fixing cases can be found on the MEAT+POULTRY website.