Tyson and Cargill Agree to $87.5 Million Settlement in Beef Price-Fixing Lawsuit
Tyson Foods and Cargill will pay a combined $87.5 million in a settlement reached with the Consumer Indirect Purchaser plaintiffs in a beef price-fixing lawsuit that began in 2019. The settlement, filed this week in a Minnesota U.S. District Court, marks a significant development in the ongoing legal battle over alleged anticompetitive practices in the U.S. beef industry.
According to court documents, “the Consumer IPP class notified the court that Tyson will pay $55 million and Cargill $32.5 million in monetary relief.” As part of the settlement, both companies have also agreed to cooperate in the ongoing case against the two remaining defendants: JBS and National Beef Packing.
Who Are the Consumer IPPs?
As reported by National Hog Farmer Magazine, “the Consumer IPPs are consumers who indirectly purchased beef from major retailers like Walmart, Costco, and Sam’s Club between August 2014 and December 2019.” These plaintiffs come from 26 states and Washington, D.C., jurisdictions that allow indirect purchasers to sue for damages under state antitrust laws.
Allegations of Market Manipulation
The heart of the class action lawsuit is a serious accusation: “the four largest meatpackers, who control 80 percent of the market, conspired to restrict the supply of cattle and fix beef prices.” The companies allegedly used coordinated production cuts and other strategies to manipulate the beef supply chain and drive up prices for both retailers and consumers.
With Tyson and Cargill settling and agreeing to cooperate, the focus now turns to JBS and National Beef Packing, who continue to fight the charges.