Cargill settles turkey price-fixing lawsuit for US$32.5M

USA – Cargill has agreed to a financial settlement of US$32.5 million in a lawsuit alleging turkey price-fixing, although the company has not admitted to any wrongdoing. 

The settlement, described as “proposed,” was disclosed in court documents filed in the US District Court for the Northern District of Illinois Eastern Division.

The lawsuit, initiated by direct purchaser plaintiffs (DPPs), accused Cargill and several other companies of colluding to manipulate turkey prices in the United States. 

According to the court filing, the plaintiffs alleged that Cargill and its alleged co-conspirators exchanged sensitive competitive information to coordinate and inflate prices.

The settlement funds will be deposited into an escrow account, the document states. It also noted this is the second DPP settlement related to the case. 

The first settlement, involving Tyson Foods, amounted to US$4.6 million and was finalized in February 2022.

Other companies named in the lawsuit include Butterball, Perdue Farms, and Hormel Foods. The allegations date back to 2019, according to a Reuters report cited in the court filing.

Despite the settlement, Cargill has denied the allegations, maintaining it did not engage in any anti-competitive practices. 

Cargill denies that it entered into an agreement to reduce or suppress competition in the market for turkey with defendants and their co-conspirators. Indeed, Cargill maintains that it did nothing wrong. But in the interests of avoiding the risk and uncertainty of continued litigation, Cargill has agreed to settle,” the court filing states.

Hormel Foods has also issued a statement denying liability, asserting that it has valid defenses against the claims. 

The company added that it continues to contest the allegations.

Cargill has agreed to assist the plaintiffs in ongoing legal actions against other defendants, including Butterball, Perdue Farms, and Hormel Foods. 

This assistance will involve providing declarations, affidavits, and live witnesses at trial, the filing indicates.

Cargill reportedly holds a 20-21% share of the US turkey market, as defined in the settlement class, while Tyson Foods controls approximately 4-5%.

Representatives from Cargill, Tyson Foods, Butterball, Perdue Farms, and Hormel Foods were contacted for comment on the case.

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