Jan 23 (Reuters) - A federal judge said food suppliers,
restaurants, caterers and others can band together in antitrust
class actions accusing the nation's largest turkey meat
processors of artificially fixing prices and overcharging
thousands of buyers.
In a ruling on Wednesday, U.S. District Judge Sunil Harjani
in Chicago certified two classes of turkey purchasers - food
suppliers and indirect commercial purchasers - to sue
Butterball, Hormel Foods ( HRL ), Perdue Farms and others for allegedly
exchanging competitive information about their operations in a
scheme to decrease production while driving up prices.
The two classes each have thousands of members, and the
direct purchasers, led by John Gross and Company Inc in
Pennsylvania and Maplevale Farms Inc in New York, are seeking
more than $1.6 billion in damages, court records show.
Hormel in a statement said it "strongly denies" any
wrongdoing and has what is called valid defenses to the
allegations.
Butterball declined to comment, and Perdue did not
immediately respond to a request for one.
Michael Flannery of Cuneo Gilbert & LaDuca, a lead attorney
for the commercial buyer plaintiffs, in a statement on Thursday
said his clients "look forward to proving at trial how they were
harmed by turkey producers' conspiracy that put profits above
all else."
The class period is January 2010 through December 2016. The
indirect purchasers include institutional food providers such as
private schools and company cafeterias.
Tyson Foods ( TSN ) settled with some plaintiffs, agreeing in 2021
to pay $4.62 million. The direct purchaser plaintiffs said this
month that Cargill agreed to pay $32.5 million to resolve claims
against it.
Cargill and Tyson both denied any wrongdoing in agreeing to
settle.
Other judges have approved class actions in related
price-fixing litigation against pork, chicken and tuna
processors.
The case is In Re Turkey Antitrust Litigation, U.S. District
Court, Northern District of Illinois, No. 1:19-cv-08318.