MINNEAPOLIS — Seaboard Foods LLC will pay nearly $15 million for two settlements involving pork price-fixing allegations.
The first settlement reached — filed July 17 with the US District Court of Minnesota — detailed $4.96 million in monetary relief for the Commercial and Institutional Indirect Purchaser Plaintiffs (CIIPPs).
The settlement is one of several already reached in this consolidated litigation. The CIIPPs alleged that pork processors, including Seaboard, partnered with data aggregate consultant Agri Stats in a conspiracy to constrain supply and fix the price of pork since at least 2009. Other companies to have reached an agreement with the CIIPPs include JBS USA, Smithfield Foods and Hormel Foods, bringing the total relief to over $59 million with Seaboard’s settlement.
The second and more recent settlement to be reached by Seaboard totaled $10 million. The settlement was filed July 30, also with the US District Court of Minnesota.
According to the court document, the Consumer Indirect Purchaser Plaintiffs (IPPs) named in this lawsuit were the first to file a complaint against the pork industry and have been litigating this case for over five years now.
Similar to the other lawsuit, the Consumer IPPs alleged pork processors, such as Seaboard Foods, stabilized the price and supply of pork by using reports from Agri Stats, the culling of herds and the use of exports.
After this settlement, the Consumer IPPs will have received close to $110 million in relief. Earlier, Hormel settled with $4.465 million, JBS with $20 million and Smithfield with $75 million.
In addition to monetary relief, Seaboard will also provide discovery materials, authenticate documents and provide testimony, as stipulated in the two settlements.