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US Appeals Court Denies Winn-Dixie’s Bid For New Mushroom Price-fixing Suit

By  |  August 29, 2023

On Wednesday, the U.S. Appeals Court made the decision to deny Winn-Dixie’s bid for a new trial in a lawsuit alleging a price-fixing scheme for mushrooms. The lawsuit accused the Eastern Mushroom Marketing Cooperative, the United Mushroom Farms Cooperative, and other defendants of unlawfully fixing the price of common white or brown mushrooms between 2001 and 2008.

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    According to Reuters, the three-judge panel of the 3rd U.S. Circuit Court of Appeals stated that a ‘reasonable jury could have concluded that the [Eastern Mushroom cooperative] lacked the ability to artificially raise prices’ and ruled in favor of the cooperative and other defendants in March 2022.

    The panel’s opinion was issued in connection with an appeal by Winn-Dixie of a variety of pre-trial orders, and the company had requested that the court used a lighter legal standard in the case called the ‘quick look’ standard in place of the “rule of reason” approach.

    Read more: NY Bus Company Accuses Rivals Of Price-Fixing Scheme

    Winn-Dixie opted out of the class-action lawsuit settlement worth nearly $34 million which was approved by the court back in 2019. Meanwhile, the U.S. Justice Department previously investigated a ‘supply control’ program run by the Eastern Mushroom Marketing Cooperative which eventually signed a consent judgment with the Justice Department in 2005 that required the organization to strike conundrum restrictions and end their program.

    In reference to the confidential nature of the documents shared among the conspirators, Patrick Ahern, a representative for Ahern & Associates commented: “They told each other that those documents were confidential to anyone outside of their group, like customers.”

    William DeStefano, an attorney with Saxton & Stump also added, “Defense expert witnesses made a ‘convincing’ showing that price discussions were not anti-competitive.”

    The case has provided insight into the lives of those involved, sparking public debate as to what legal measures should be taken against those who take part in anti-competitive activities.

    Source: Reuters