Brooks Law Digest: Antitrust

Food Lion, a supermarket chain, and the Maryland and Virginia Milk Producers Cooperative Association have filed suit against the Dairy Farmers of America, alleging that the proposed merger between the corporation and Dean Foods Company violates federal antitrust law and are seeking injunctive relief.

A New York Deli has filed suit against top turkey producers, including Perdue, Tyson, Butterball, and Hormel, alleging that the companies conspired to illegally trade price data and raise the price of their products.

The United States Secretary of Agriculture has announced that the agency will conduct an investigation into why surging beef prices amid the coronavirus crisis has not resulted in higher prices for cattle. The announcement follows a request by United States Senators last month for the Department of Justice to investigate beef price-fixing.

Following milk supplier Dean Foods’ bankruptcy last year, Dairy Farmers of America has agreed to pay $425 million to acquire 44 of the company’s facilities and certain corporate assets. The deal is subject to approval by the U.S. Department of Justice.

A California federal judge has refused to grant approval of a $6.5 million settlement in a price-fixing lawsuit against Chicken of the Sea, a canned tuna company. The judge denied the settlement because it is not clear that the proposed settlement is in the best interest of the class.

The Agricultural Marketing Service has proposed a change to its regulations regarding the implementation of the Packers and Stockyards Act. The proposed rule would establish criteria, rather than using a case-by-case approach, for determining whether an undue or unreasonable preference or advantage has occurred in violation of the Act. The promulgation of such regulations is required by the 2008 Farm Bill. The agency is accepting comments on this proposal until March 13, 2020.

Winn-Dixie has told a federal court that it has reached a settlement with dairy producers, including Land O’Lakes, for price-fixing. The case centers around a National Milk Producers Federation Program that was allegedly an effort to sell dairy cows for beef as a way to decrease the supply of milk. The terms of the settlement have not yet been disclosed.

Three chicken companies have agreed to settle price-fixing claims against them for a settlement of over $13 million. The case began in September 2016, when consumers filed a class action suit on behalf of all direct purchasers of broiler chickens in the country. The settlement has not yet been approved.

A federal jury in Pennsylvania has rejected claims that egg producer Rose Acre Farms Inc. participated in an industry conspiracy to give hens used to produce eggs more cage space as a pretext for reducing the supply of eggs.

The National Milk Producers Foundation has agreed to make payments totaling $220 million to its consumers to avoid a case set to go to trial in October. The case centered around class action claims accusing the organization of fixing dairy prices through a program to slaughter dairy cows.