SPOKANE, WASH. — On Aug. 28, a federal court judge granted Tyson Foods Inc.’s motion to dismiss a lawsuit filed by former cattle feeder Cody Easterday, alleging the company created a monopsony in the Pacific Northwest.
Easterday filed his complaint against Tyson in February 2023.
Easterday claimed that he and his company, Easterday Ranches Inc., “were financially harmed by the anti-competitive, unfair, abusive, unjustly discriminatory and deceptive acts and practices, among others, by defendant, including being charged erroneous fees, interest and commissions, in violation of federal and state law, including the PSA.”
The allegations state that Tyson misused its economic power over cattle feeders and contracts, and specifically over Easterday between 2010 and 2020.
Judge Stanley Bastian dismissed the case, saying Easterday did not have the standing to assert such claims, as the contracts relate to Tyson and Easterday Ranches — not to Easterday himself.
For over 20 years, Easterday Ranches worked with Tyson to supply fed cattle for harvest.
Last year, the rancher was sentenced to 11 years of prison for scamming Tyson out of $244 million by charging the company costs to pay for cattle that did not exist.
Easterday pled guilty to submitting fraudulent invoices and false information to Tyson in order to gain reimbursement for the “ghost” cattle between 2016 and 2020. Tyson estimated that the costs covered feed for approximately 265,000 cattle.
Easterday Ranches filed for Chapter 11 bankruptcy in February 2021. Its debts were listed between $100 million and $500 million, with 20 large outstanding debts.