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

WH

28/09/2022 13:05

(Adds Smithfield comment, details about Smithfield's parent,
changes dateline from Sept. 28)
    By Jonathan Stempel
       Sept 27 (Reuters) - Smithfield Foods Inc has agreed to
pay $75 million to settle a lawsuit by consumers who accused the
meat producer and several competitors of conspiring to inflate
prices in the $20 billion-a-year U.S. pork market by limiting
supply.
    A preliminary settlement in the antitrust case was filed on
Tuesday night with the federal court in Minneapolis, and
requires approval by U.S. District Judge John Tunheim.
    The accord follows the judge's Sept. 14 approval of a
similar $20 million settlement between consumers and JBS SA
 JBSS3.SA , one of Smithfield's largest rivals.
    Smithfield spokesman Jim Monroe said the company denied
liability in agreeing to settle, and that the accord reduces the
distraction, risk and cost of protracted litigation.
    He also said the accord eliminates a "substantial portion"
of Smithfield's remaining liability in the nationwide case.
    The company is based in Smithfield, Virginia and is a unit
of Hong Kong-listed WH Group ltd  0288.HK , which calls itself
the world's largest pork company.
    Several companies have faced lawsuits in Minneapolis and
Chicago also accusing them of inflating beef and chicken prices.
    In the pork litigation, Smithfield previously reached
settlements of $83 million with so-called "direct" purchasers
such as Maplevale Farms and $42 million with commercial
purchasers, a group that includes restaurants.
    Some of the other defendants are Hormel Foods Corp  HRL.N ,
Tyson Foods Inc  TSN.N  and data provider Agri Stats Inc.
    Smithfield agreed to provide cooperation that the
plaintiffs' lawyers said will strengthen their cases against the
remaining defendants.
    The Biden administration has announced plans to bolster
competition in the meat sector, amid concern that some meat
packers could dictate prices and add to inflationary pressures.
    The case is In re Pork Antitrust Litigation, U.S. District
Court, District of Minnesota, No. 18-01776.
 (Reporting by Jonathan Stempel in New York; Editing by Chris
Reese and Louise Heavens)
 ((jon.stempel@thomsonreuters.com; +1 646 223 6317; Reuters
Messaging: jon.stempel.thomsonreuters.com@reuters.net))