Dive Brief:
- Tyson Foods has agreed to pay $85 million to settle a class action lawsuit that accuses the company of conspiring with JBS and other meatpacking giants to artificially raise pork prices.
- The settlement is the largest payout in a price-fixing case that has been ongoing for seven years. Previously, the largest settlement was Smithfield Foods’ $75 million agreement in late 2022.
- The latest lawsuit alleges the meat and poultry processor conspired with other major producers to use the tech platform Agri Stats and raise prices by intentionally constraining pork supply. Meatpackers also face similar cases related to turkey and beef supply.
Dive Insight:
Meatpacking giants have agreed to pay out close to $200 million so far to settle allegations that a sophisticated pricing scheme forced grocery stores and consumers to pay higher prices for bacon, sausages and other pork products.
First filed in 2018, the price-fixing lawsuit alleges eight of the largest U.S. pork producers illegally conspired to align production numbers and boost profitability between 2009 and 2021. The producers control more than 80% of the pork market, the lawsuit said.
Tyson's pork brands include Hillshire Farms, Ball Park Franks and Wright Brand bacon. Pork made up 11% of Tyson's $53 billion in sales for fiscal year 2024, the company reported.
JBS previously settled the case in 2022 for $20 million. Two years later, Seaboard reached a $10 million settlement, and Hormel Foods agreed to pay $4.5 million.
The Tyson settlement adds to a litany of price-fixing and wage-suppressing allegations against some of the largest U.S. meatpackers. Tyson previously agreed to pay $221 million to settle a chicken price-fixing suit in 2021.
Tyson did not immediately respond to Food Dive for a request for comment. The final settlement agreement still needs approval from a district judge.
