Pork industry accused of collusion in lawsuit

A lawsuit has been filed that alleges the largest pork producing companies in the United States conspired in an effort to control supply and inflate prices.

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photo by Dmitry Kalinovsky | Dreamstime.com
photo by Dmitry Kalinovsky | Dreamstime.com

A lawsuit has been filed that alleges the largest pork producing companies in the United States conspired in an effort to control supply and inflate prices.

Law firm Hagens Berman Sobol Shapiro LLP, representing a group of 13 grocery shoppers filed a suit in a federal court in Minnesota on June 27, in which the plaintiffs accuse the defendants of sharing private information about their companies with their competitors through AgriStats.

Among the defendants are AgriStats, Tyson Foods, Hormel Foods, Smithfield Foods, JBS, Clemens Foods, Seaboard Foods, Triumph Foods and Indiana Packers.

“The principal (but not exclusive) method by which defendants implemented and executed their conspiracy was by coordinating their output and limiting production with the intent and expected result of increasing pork prices in the United States,” the suit reads. “In furtherance of their conspiracy, defendants exchanged detailed, competitively sensitive, and closely guarded non-public information about prices, capacity, sales volume and demand through their co-conspirator Agri Stats.”

Hagens Berman Sobol Shapiro alleges the collusion dates back to at least 2009.

“Hardworking families across the nation strive to put food on the table, but little do they know, the game is rigged from the beginning: the largest food companies are secretly ensuring their dollar doesn’t go as far at the supermarket as it should,” Steve Berman, managing partner of Hagens Berman Sobol Shapiro, stated in a press release. “We’re seeking to hold Tyson, Hormel and others accountable for this nearly decade-long scheme to hog their share of profits.”

Hormel Foods responds

Hormel Foods issued the following statement in response to the suit: "Hormel Foods is a 127 year old global branded food company with a reputation as one of the most respected companies in the food industry. We are confident that any allegations such as these are completely without merit. We intend to vigorously defend this lawsuit."

Other lawsuits against broiler, egg industries

Hagens Berman Sobol Shapiro LLP has a history of filing lawsuits against companies in the animal protein industry.

The firm in 2016 filed a suit that accused broiler companies Tyson Foods, Pilgrim’s, Sanderson Farms, Simmons Foods, Koch Foods, JCG Foods, Wayne Farms, Mountaire Farms, Peco Foods, Foster Farms, House of Raeford Farms, Fieldale Farms, George’s Inc. and O.K. Foods of killing chickens and destroying eggs to limit production and raise the price of chicken.

A second suit was filed by the firm on behalf of Winn-Dixie Stores and its sister grocery chain Bi-Lo in January. The suit, in terms of its claims and the defendants named, was nearly identical to the one filed in 2016.

The law firm also in January filed a suit against Walmart and Cal-Maine Foods, claiming the two companies misled consumers about the conditions in which hens that laid Walmart store brand Organic Marketside eggs were raised.

A similar lawsuit targeting accusing egg companies of collusion in an effort to raise prices, that dates back to 2008, ended earlier this month in a jury favoring plaintiffs Rose Acre Farms, R.W. Sauder and Ohio Fresh Eggs.

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