Judge approves Tyson, Cargill beef price fixing settlements

A US federal judge granted final approval on May 27 for the $87.5 million deals involving Tyson Foods Inc. and Cargill Inc. to settle antitrust claims with consumer indirect purchaser plaintiffs (IPPs).

The IPPs accused the meat processors of conspiring to inflate beef prices.

Those included in the settlement class are all persons and entities who indirectly purchased fresh or frozen beef products made from chuck, loin, rib or round primal cuts from Tyson Foods or Cargill between Aug. 1, 2014, and Dec. 31, 2019. The lawsuit excluded any beef product marketed as USDA Prime, organic, antibiotic free, 100% grass-fed, kosher, halal, certified humane, Wagyu, “American-Style Kobe Beef,” as well as products that were ground, marinated, seasoned, flavored, breaded or cooked.

After a hearing on May 26, the US District Court of the District of Minnesota decided to grant the IPPs’ motions, including the approval of $29.6 million in attorneys’ fees, the reimbursement of $8.9 million in litigation expenses, and $2,000 service awards for each of the 28 named class representatives.

Meanwhile, Judge John R. Tunheim overruled two objections to the $87.5 million agreement made by members of the settlement class, who argued the deals did not provide adequate relief.

“The court concludes the objectors are mistaken,” Tunheim said. “Cargill settled for approximately 8% of the single damages attributable to them as calculated by consumer IPPs’ expert, Dr. Russell Mangum, and Tyson settled for approximately 8.6% of the single damages attributable to them as calculated by Dr. Mangum. Moreover, consumer IPPs’ settlement with Tyson exceeds the amount of the commercial and institutional indirect purchaser plaintiffs’ settlement with Tyson and is approximately two-thirds of the amount of the direct purchaser plaintiffs’ settlement with Tyson.”