DENVER – Cargill Inc., National Beef Packing Co., and Hormel Food Corp., all recently agreed to pay $57.4 million between the three companies to settle an ongoing class action lawsuit that accused them of worker wage suppression at red meat processing facilities.
The law firm representing the workers in the lawsuit recently asked a judge in the US District Court for the District of Colorado to approve the deals, pushing the total to more than $200 million in settlements since the case began in 2022.
According to the court document, Cargill is expected to pay $29.75 million, National Beef will pay $14.2 million and Hormel plans to pay $13.5 million.
Earlier in 2024, Tyson Foods agreed to pay $72.5 million and JBS previously settled for $55 million. Both deals remain pending before the court.
In the summary of allegations, the plaintiffs claimed that red meat processors and two consulting companies conspired to stabilize the compensation paid to workers at the facilities.
“Hormel Foods strongly denies liability and continues to deny the allegations in the plaintiffs’ complaint,” the company said. “Hormel Foods believes it has valid defenses to the claims. However, to avoid the uncertainty, risk, expense and distraction of continued litigation, the company has decided to settle this case. The settlement is subject to final Court approval. Hormel Foods remains focused on its long-term strategic goals and continues to invest in, transform and grow its business.”
Cargill also responded, focusing on moving forward following the settlement agreement.
“Cargill conducts business in a legal, ethical and responsible manner and we deny any and all wrongdoing,” Cargill said. “We are grateful for our employees’ commitment, and we set their compensation independently to ensure fair pay and competitive wages in each of our plants. We chose to settle this case only to avoid larger litigation costs and distractions from the critical work our production teams do, providing enough beef to feed 72 million people every single day.”
National Beef Packing did not immediately respond to a request for comment.
In its motion to the court, attorneys for the workers noted that the plaintiffs “will be provided with substantial guaranteed relief and the resulting litigation will benefit by proceeding in a more targeted manner against fewer, remaining defendants.”
Smithfield Foods, who was also named in the lawsuit, has still not settled in this court case.
Other companies who reached prior settlements included Seaboard Foods, at $10 million and Perdue Farms Inc., at $1.25 million.
The attorneys working on this case continue to work on a similar case dealing with poultry processing workers.