Oct 7 (Reuters) - McDonald's has sued JBS, Tyson Foods
and other leading meat processing and packing companies for
allegedly conspiring for years to limit beef supplies, boosting
their profits while causing the fast food giant to pay
artificially higher prices.
McDonald's said in a lawsuit filed on Friday in Brooklyn
federal court that the meatpackers, also including Cargill and
National Beef Packing, collectively reduced their output to
drive up industry prices since 2015.
The lawsuit is the latest to accuse the world's largest
meatpackers of violating U.S. antitrust law by coordinating on
the price they paid for cattle and on slaughter volumes.
"Only colluding meatpackers would expect to benefit by
reducing their prices and purchases of slaughtered cattle
because they would know that their conspiracy would shield them
from the dynamics of a competitive marketplace," McDonald's said
in its lawsuit.
JBS, Tyson, Cargill and National Beef did not immediately
respond to requests for comment on the lawsuit on Monday.
McDonald's had no immediate comment.
The meat producers have denied any wrongdoing in related
cases that have been consolidated in Minnesota federal court.
The plaintiffs in those cases include BJ's Wholesale, Sodexo,
Target and Aldi.
The beef meatpackers also face lawsuits from U.S. consumers,
cattle producers and others that are seeking class-action status
and monetary damages in the Minnesota litigation.
Cattle producers who said they sold animals directly to the
meatpackers for slaughter said they lost billions in the alleged
scheme, court records show.
McDonald's has 13,000 branded restaurants in the United
States, part of its 39,000 restaurant global footprint in more
than 100 countries.
McDonald's said it was seeking unspecified monetary damages
and a court to order an end to the alleged price-fixing
conspiracy.
U.S. District John Tunheim in Minneapolis is overseeing the
coordinated beef antitrust legal proceedings.
In the first settlement, JBS said in 2022 it would pay $52.5
million to resolve some of the purchasers' class action claims.
The case is McDonald's Corp v. Cargill et al, U.S. District
Court, Eastern District of New York, No. 1:24-cv-07017-TAM.
For McDonald's: Philip Iovieno Nicholas and Gravante Jr of
Cadwalader, Wickersham & Taft
For defendants: No appearances yet
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