Food Companies Keep Fighting  07/02 08:56

   Wage Conspiracy Lawsuit: 3 Food Companies Fight as Settlements Exceed $202.7M

   Three companies continue to fight allegations they conspired to keep 
employee wages low, while the number of settlements continues to grow.

Todd Neeley
DTN Environmental Editor

   LINCOLN, Neb. (DTN) -- Three of the original 16 food companies sued for 
allegedly conspiring to keep employee wages low continue to fight the 
allegations in court, as a federal court considers several new settlements 
reached in the case filed in 2022.

   As of June 13, 2025, Smithfield Foods, Agri Stats Inc. and Greater Omaha 
Packing Co., Inc. have not reached settlements, according to court documents 
filed in the U.S. District Court for the District of Colorado.

   The employee plaintiffs in the case asked the court last month to grant 
preliminary approval of settlements with Agri Beef Co., Washington Beef, LLC, 
and Indiana Packers Corporation. Those include a combined $1.4 million 
settlement with Agri Beef and Washington Beef, as well as a $1.1 million 
settlement with Indiana Packers.

   Total settlements in the case now exceed $202.7 million from 12 defendant 
families, according to court records.

   Previous settlements include $72.5 million with Tyson Foods, $55 million 
with JBS, Cargill at $29.8 million, National Beef at $14.2 million and Hormel 
Foods-QPP, $13.5 million.

   Notices are expected to be sent to class members starting on Oct. 13, 2025, 
according to court documents. Class members will have until March 11, 2026, 
either to request exclusion or object to settlements. A final approval hearing 
is expected to take place around May 2026, with funds distribution beginning in 
October 2026.

   In an answer to an amended complaint filed by Smithfield in May 2025, the 
company continues to categorically deny the existence of a conspiracy to 
suppress wages.

   The company also makes many other legal points including the employee claims 
are barred by the statute of limitations, there were no injury to the 
plaintiffs, that imposing liability to Smithfield would violate the company's 
constitutional rights, among other things.

   Agri States and Greater Omaha Packing made similar arguments in their 
responses to an amended complaint.

   The ongoing lawsuit potentially affects about 150,000 workers per year from 
2014 to the present.

   The original lawsuit alleged that since at least 2014 the companies 
"conspired and combined to fix and depress" compensation to employees at about 
140 red meat processing plants across the country, in violation of the Sherman 
Antitrust Act. The companies named in the lawsuit produce about 80% of all red 
meat sold to U.S. consumers.

   The lawsuit said senior executives at the companies established and approved 
hourly wage rates, annual salaries and employment benefits.

   The complaint said the companies conducted "secret" compensation surveys and 
held "secret" annual meetings that included executives from the companies named 
in the lawsuit.

   "The purpose, intent and outcome of these annual red meat industry 
compensation meetings was to depress and fix the wages, salaries and benefits 
of class members at artificially depressed levels," the complaint alleged.

   In addition, the lawsuit said the companies were in direct communication 
with senior executives who "extensively discussed, compared, and in turn, 
further suppressed compensation through email and phone communications."

   The complaint said the companies entered into no-poach agreements, 
preventing the companies from recruiting the other companies' employees.

   Read more on DTN:

   "Companies Seek Wage-Fixing Case Exit," 
https://www.dtnpf.com/agriculture/web/ag/news/business-inputs/article/2024/04/25
/nine-food-companies-file-motions

   "Tyson, JBS Settle on Wage-Fixing Case," 
https://www.dtnpf.com/agriculture/web/AG/news/business-inputs/article/2024/03/13
/tyson-jbs-agree-138m-settlement-wage#:~:text=(DTN)%20%2D%2D%20JBS%20USA%20Food,fi
led%20in%20a%20federal%20court

   Todd Neeley can be reached at todd.neeley@dtn.com

   Follow him on social media platform X @DTNeeley

    




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