JBS to pay $20 million in pork price-fixing settlement

Sep 19, 2022, 12:10 PM | Updated: 8:54 pm

OMAHA, Neb. (AP) — JBS has agreed to pay $20 million to settle a lawsuit with consumers that accused the giant meat producer of conspiring with other meat companies to inflate the price of pork.

The latest meat-industry settlement will likely reinforce concerns that the White House, members of Congress and trade groups have raised about how the lack of competition in the industry affects prices.

A federal judge in Minnesota approved the settlement of the price-fixing lawsuit last week. But the judge also ruled that nearly $7 million of the settlement will go to the plaintiffs’ lawyers for their work in the case.

The pork lawsuit is one of several price-fixing lawsuits making their way through the courts. Meat producers have also been accused of inflating beef and chicken prices, and several multimillion-dollar settlements have been announced in those cases.

Previously, JBS agreed to pay restaurants and caterers $12.75 million as part of a different settlement in this pork lawsuit, and Smithfield Foods agreed to pay two different groups of pork purchasers $83 million and $42 million in two different settlements in the case.

Despite the settlements, meat companies have defended their pricing practices.

Officials at the Brazilian company’s U.S. headquarters in Greeley, Colorado, didn’t immediately respond to questions about the latest settlement on Monday, but JBS didn’t admit any wrongdoing as part of the deal.

The lead attorneys for the plaintiffs said it’s not clear how much individual consumers who bought pork between 2009 and last year might receive, partly because money from additional settlements may be added to the fund before any payments are sent out. More details about the settlement are available online.

The pork lawsuit remains pending against other major producers including Hormel, Tyson Foods and the Agri Stats database company they allegedly used to share confidential information about price, capacity and demand. JBS agreed to cooperate with the case against those other companies as part of the settlement.

The lawsuit accuses the major meat processors, who together control more than 70% of pork production nationwide, of working cooperatively to limit the supply of hogs and inflate prices.

The White House, several agricultural trade groups and a number of prominent members of Congress have all questioned the industry’s pricing practices although the meat producers argue that supply and demand factors, not anticompetitive behavior, drive prices.

The Justice Department has been looking into allegations of price fixing in the industry at least since 2020, but it hasn’t provided updates on its investigation.

The Biden administration has announced several efforts to increase competition in the meat industry to help reduce prices including a $1 billion program to help establish and expand independent slaughterhouses. And the White House has tweaked administrative rules to make it easier for farmers and ranchers to report concerns or sue over anticompetitive behavior.

The judge who approved the settlement last Wednesday said awarding the lawyers involved 33% of the proceeds, as he did here, was in line with other similar class action lawsuits.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

FILE - Gabby Petito's mother Nichole Schmidt, wipes a tear from her face during a news conference o...

Associated Press

Mother of man who killed Gabby Petito said in letter she would help son ‘dispose of a body’

The mother of the man who killed Gabby Petito told her son in an undated letter that she would “dispose of a body” if needed because she loved him so much, according to copies of the note shared publicly for the first time this week by attorneys for Petito's parents.

2 days ago

A member of the 3rd U.S. Infantry Regiment, also known as The Old Guard, places flags in front of e...

Associated Press

5 things to know about Memorial Day including its controversies

Memorial Day is supposed to be about mourning the nation’s fallen service members, but it’s come to anchor the unofficial start of summer and a long weekend of discounts on anything from mattresses to lawn mowers.

2 days ago

FILE - This artist sketch depicts the trial of Oath Keepers leader Stewart Rhodes, left, as he test...

Associated Press

Officers describe chaos, fear on Jan. 6 as judge weighs prison time for Oath Keepers’ Rhodes

Police officers who defended the U.S. Capitol on Jan. 6, 2021, and public servants who fled the mob's attack told a judge on Wednesday that they are still haunted by what they endured, as the judge prepares to hand down sentences in a landmark Capitol riot case.

3 days ago

Pride month merchandise is displayed at the front of a Target store in Hackensack, N.J., Wednesday,...

Associated Press

Target on the defensive after removing LGBTQ+-themed products

Target once distinguished itself as being boldly supportive of the LGBTQ+ community.

4 days ago

(Photo By Tom Williams/CQ Roll Call via Getty Images)...

Associated Press

Former Arizona television journalist announces bid for Schweikert’s US House seat

A former Phoenix television journalist announced her candidacy Wednesday for the congressional seat currently held by seven-term Republican Rep. David Schweikert.

4 days ago

Tortoise by Henry Davis earned an honorable mention in the "Adventures in Nature” student photo c...

Associated Press

When you adopt a desert tortoise, prepare for a surprisingly social and zippy pet

They’re not fluffy, they don’t play fetch and they certainly don’t roll over. But there is such a thing as a lap tortoise.

5 days ago

Sponsored Articles

(Photo: OCD & Anxiety Treatment Center)...

OCD & Anxiety Treatment Center

Here’s what you need to know about OCD and where to find help

It's fair to say that most people know what obsessive-compulsive spectrum disorders generally are, but there's a lot more information than meets the eye about a mental health diagnosis that affects about one in every 100 adults in the United States.

(Desert Institute for Spine Care in Arizona Photo)...

Desert Institute for Spine Care in Arizona

5 common causes for chronic neck pain

Neck pain can debilitate one’s daily routine, yet 80% of people experience it in their lives and 20%-50% deal with it annually.

(Photo by Michael Matthey/picture alliance via Getty Images)...

Cox Communications

Valley Boys & Girls Club uses esports to help kids make healthy choices

KTAR’s Community Spotlight focuses on the Boys & Girls Club of the Valley and the work to incorporate esports into children's lives.

JBS to pay $20 million in pork price-fixing settlement