April 1 (Reuters) - Tyson Foods ( TSN ) and other top pork
producers must face lawsuits from consumers and other buyers
accusing them of a conspiracy to restrict supply and fix prices,
causing billions of dollars in overcharges, a U.S. judge in
Minnesota has ruled.
U.S. District Judge John Tunheim in a 232-page order on Monday
mostly rejected efforts by leading pork processors to knock out
the allegations before any trial.
Tunheim said there was enough evidence for a jury to weigh
antitrust claims against Tyson, Smithfield Foods, JBS USA and
several other companies. The order dismissed Hormel as a
defendant.
Tyson, Smithfield and JBS did not immediately respond to
requests for comment. Hormel in a statement said it welcomed the
court's ruling dismissing it from the cases. The companies have
all denied any wrongdoing.
Attorney Michael Flannery, representing restaurants and
other small businesses, in a statement said the judge's order
"makes clear there is compelling evidence" supporting his
clients' claims.
Attorneys for consumers and other groups of plaintiffs
either declined to comment or did not immediately respond to a
request for one.
The lawsuits are part of a broader set of cases accusing
beef, turkey and chicken producers of fixing prices in their
markets. The litigation has generated hundreds of millions of
dollars in settlements.
Tunheim's order also said the industry benchmarking company
Agri Stats must face antitrust allegations for its alleged role
in the conspiracy from at least 2009 to 2018.
The plaintiffs alleged pork producers exchanged
competitively sensitive, non-public information through Agri
Stats, allowing them to communicate with each other and maintain
the price-fixing conspiracy. Tyson said it used Agri Stats to
find ways to improve costs.
Agri Stats did not immediately respond to a request for
comment. It has denied any wrongdoing.
Tunheim said Hormel, unlike rival pork producers, "was
reluctant - and in some ways, refused - to participate in Agri
Stats reports."
The judge said the evidence in the litigation "supports a
reasonable inference of a price-fixing conspiracy and tends to
exclude the possibility of mere independent action among
co-defendants."
One expert for the plaintiffs said consumers suffered at
least $1.4 billion in damages during the class period, court
records show.
The case is In re Pork Antitrust Litigation, U.S. District
Court for the District of Minnesota, No. 0:18-cv-01776-JRT-JFD.
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Judge green-lights class actions over US turkey prices
Data company Agri Stats must face Justice Dept antitrust
lawsuit