Hormel Foods, a leading pork producer in the United States, has reached a significant settlement in a case involving allegations of price-fixing within the pork industry. The settlement, totaling millions of dollars, addresses claims made by three different classes of pork purchasers.
The settlement agreement involves a payment of $2.4 million to the commercial indirect purchaser class, $4.8 million to the class of direct pork purchasers, and $4.5 million to the consumer indirect purchaser class. These settlements come after a series of legal proceedings that began with the consolidation of 27 cases in December 2022, involving 146 parties.
The lawsuit revolves around accusations of collusion among pork processors, who collectively control over 80% of the wholesale pork market. The plaintiffs in the case were divided into three distinct groups: Direct Purchaser Plaintiffs (DPPs), Commercial and Institutional Indirect Purchaser Plaintiffs (CIIPPs), and Consumer Indirect Purchaser Plaintiffs (CIPPs).
This settlement follows a previous agreement reached in June, where Seaboard Foods agreed to pay $9.75 million to settle allegations brought by the class of direct purchasers. These legal actions underscore ongoing efforts to address concerns of anti-competitive behavior and ensure fair practices within the pork industry.
