Judge consolidates cattle anti-trust lawsuits
Story Date: 7/17/2019

 

Source: Lisa M. Keefe, MEATINGPLACE, 7/16/19


Three lawsuits filed against major beef packers have been consolidated into one, entitled “In re Cattle Antitrust Litigation” or “Cattle Actions,” in U.S. District Court in Minnesota, according to court filings.

The consolidated cases include one filed in April by Ranchers Cattlemen’s Legal Aid Fund (R-CALF) and several suppliers against Tyson, JBS, Cargill, Marfrig and National Beef, among others; and two other cases filed in April and May against the same defendants.

The amended complaint alleges that the packing companies conspired “to suppress the price of fed cattle that they purchased in the United States, from at least January 1, 2015 through the present.” Among other consequences, the plaintiffs say the defendants’ conduct “precipitated an unprecedented collapse in fed cattle prices in 2015,” and then continued to keep downward pressure on the price of cattle.

The complaint states that the plaintiffs have “witness accounts, trade records, and economic evidence” that support those claims.
North American Meat Institute spokeswoman Sarah Little told Meatingplace, "We continue to believe these lawsuits are unfounded and ignore the economics of the marketplace. The meat industry has been subject to careful scrutiny in the past, always with the conclusion there has been no evidence of collusion.”   

At the time the first lawsuit was filed, in April, Tyson Foods said in a statement, "We’re disappointed this baseless case was filed. There’s simply no merit to the allegations that Tyson colluded with competitors. This complaint is nothing more than another transparent and opportunistic attempt by attorneys to make money for themselves at the expense of consumers. … Contrary to the assertions in this lawsuit, Tyson wants its suppliers to succeed. Tyson will vigorously defend itself and its proud heritage of supporting America’s farmers and ranchers."

Cargill has said in response, "For many years, Cargill has served as a trusted partner to American cattle ranchers, committed to supporting their family farms and livelihoods. We believe the claims lack merit, and we are confident in our efforts to maintain market integrity and conduct ethical business."

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