JBS USA Reaches $83.5 Million Settlement in Cattle Price-Fixing Case

JBS USA has agreed to an $83.5 million settlement to address allegations that it conspired with other major meat producers to depress prices paid to cattle ranchers for feeder cattle. According to the US Herald, the agreement was reached after extensive negotiations and was presented for preliminary approval in a Minnesota federal court on January 31.

The legal motion, filed by a proposed class of ranchers, highlighted that discussions were conducted at arm’s length and with the involvement of mediator Miles Ruthberg. Per US Herald, the ranchers’ legal team asserted that after years of litigation, they had developed a comprehensive understanding of the strengths and weaknesses of their case against JBS, which helped facilitate the settlement.

A Decade-Long Legal Dispute Nears a Partial Resolution

The settlement represents a significant milestone in a legal battle that has spanned nearly ten years. However, it does not mark the conclusion of all litigation concerning alleged price-fixing by the “Big Four” meat producers — JBS, Tyson Foods, Cargill, and National Beef Packing Co.

According to US Herald, the case falls within a broader multidistrict litigation (MDL) framework, which consolidated at least six related lawsuits in Minnesota federal court in 2022. While the JBS settlement applies solely to one of these cases, other claims against the remaining meat producers remain unresolved.

Legal Challenges and Setbacks in Related Cases

Despite the progress represented by the JBS settlement, not all lawsuits within the MDL have moved forward smoothly. US Herald reports that a federal judge dismissed price-fixing claims in another case last summer, citing a lack of sufficient evidence demonstrating that plaintiffs were directly affected by the alleged scheme. This ruling strengthened the defense’s position, with meat producers arguing that ranchers should not be granted another chance to amend their claims.

As legal proceedings continue against Tyson Foods, Cargill, and National Beef Packing Co., the JBS settlement may set a precedent for future negotiations in this complex, ongoing litigation.

Source: US Herald