Smithfield Foods to pay $75 mln in pork price-fixing settlement

Sept 27 (Reuters) – Smithfield Meals Inc has agreed to pay $75 million to settle a lawsuit by customers who accused the meat producer and a number of other opponents of conspiring to inflate costs within the $20 billion-a-year U.S. pork market by limiting provide.

A preliminary settlement within the antitrust case was filed on Tuesday night time with the federal courtroom in Minneapolis, and requires approval by U.S. District Choose John Tunheim.

The accord follows the decide’s Sept. 14 approval of an analogous $20 million settlement between customers and JBS SA (JBSS3.SA), certainly one of Smithfield’s largest rivals.

Smithfield spokesman Jim Monroe mentioned the corporate denied legal responsibility in agreeing to settle, and that the accord reduces the distraction, threat and price of protracted litigation.

He additionally mentioned the accord eliminates a “substantial portion” of Smithfield’s remaining legal responsibility within the nationwide case.

The corporate relies in Smithfield, Virginia and is a unit of Hong Kong-listed WH Group ltd (0288.HK), which calls itself the world’s largest pork firm.

A number of firms have confronted lawsuits in Minneapolis and Chicago additionally accusing them of inflating beef and hen costs.

Within the pork litigation, Smithfield beforehand reached settlements of $83 million with so-called “direct” purchasers akin to Maplevale Farms and $42 million with industrial purchasers, a bunch that features eating places.

Among the different defendants are Hormel Meals Corp (HRL.N), Tyson Meals Inc (TSN.N) and knowledge supplier Agri Stats Inc.

Smithfield agreed to offer cooperation that the plaintiffs’ legal professionals mentioned will strengthen their circumstances in opposition to the remaining defendants.

The Biden administration has introduced plans to bolster competitors within the meat sector, amid concern that some meat packers may dictate costs and add to inflationary pressures.

The case is In re Pork Antitrust Litigation, U.S. District Courtroom, District of Minnesota, No. 18-01776.

Reporting by Jonathan Stempel in New York; Modifying by Chris Reese and Louise Heavens

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