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McDonald's sues major beef producers in US price-fixing lawsuit
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McDonald's sues major beef producers in US price-fixing lawsuit
Oct 7, 2024 9:06 AM

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

Read more:

Sysco can't scrap its Pilgrim's Pride price-fixing

settlements, US judge rules

Tyson, JBS to pay $127 million to resolve workers'

wage-fixing lawsuit

U.S. senators propose FTC investigate beef price fixing

JBS reaches 'icebreaker' settlement of beef price-fixing

claims

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