Hagens Berman: $200.2 Million in Settlements Reached in Lawsuit Accusing Red Meat Processing Industry of Wage-Fixing

Business Wire 9-Sep-2024 6:16 PM

Motion for preliminary approval seeks court's initial nod for settlement affecting thousands of workers

Attorneys at Hagens Berman announced settlements totaling $200.2 million reached with multiple red meat processing companies in the U.S., seeking to restore employees' losses from what the lawsuit alleges to be a yearslong period of wage-fixing, restraining the pay of thousands of workers.

The motion filed Sept. 5, 2024, in the U.S. District Court for the District of Colorado seeks preliminary approval of settlements reached with National Beef Packing Co. ($14.2 million), Cargill Meat Solutions Corp. ($29.75 million) and Hormel Foods Corp. ($13.5 million) and comprise the seventh, eighth and ninth settlements reached in the case.

The class action brings claims of fraudulent concealment of violation of federal antitrust law, the Sherman Act, and lays out the specific methods the 11 red meat processors allegedly used to fix wages and keep them lower than what the market would dictate.

Together the companies named in this lawsuit produce roughly 80% of the red meat sold in the U.S., and own and operate approximately 140 red meat processing plants in the continental United States.

"We look forward to the court's preliminary approval of this settlement so that payments can begin to make their way to the class members who rightfully deserve this money," said Shana Scarlett, partner at Hagens Berman. "Our antitrust team continues to diligently litigate against remaining defendants to secure meaningful recovery."

Affected employees include those who have occupied various positions along processing lines, including slaughtering and aging, cutting and further processing, repairing processing machines, and supervising processing lines.

About the Meat Industry's Alleged Wage-Fixing

Hagens Berman first filed the class action in 2022 against a lengthy list of 18 named defendants: JBS USA Food Company, Tyson Foods Inc., Cargill, Hormel, Rochelle Foods LLC, American Foods Group LLC, Triumph Foods LLC, Seaboard Foods LLC, National Beef, Smithfield Foods Inc., Smithfield Packaged Meats Corp., Agri Beef Co., Washington Beef LLC, Purdue Farms Inc., Greater Omaha Packing Co. Inc., Nebraska Beef LTD., Indiana Packers Corporation, Quality Pork Processors Inc., as well as third-party data-sharing firms Agri Stats Inc. and Webber, Meng, Sahl and Company Inc.

The class action states that since 2014, many red meat processing companies allegedly conspired to fix and depress compensation paid to production and maintenance employees at meat processing plants in violation of federal law. "Defendant Processors engaged in the conspiracy to increase their profits by reducing labor costs, which comprise a substantial share of each Defendant Processor's total operating costs. The intended and actual effect of Defendants' conspiracy to fix compensation has been to reduce and suppress the wages, salaries, and benefits paid to Class Members…" according to the lawsuit.

The complaint alleges various methods of collusion between the meat processing companies, including using third-party companies that intentionally operate under the public's radar, conducting secret meetings that excluded parties not involved in the conspiracy, exchanging competitively sensitive compensation data through a non-public, proprietary system and more.

The lawsuit parallels the firm's wage-fixing lawsuit pertaining to workers in the U.S. poultry processing industry.

Affected employees include those who worked at defendant companies, their subsidiaries or related entities at beef-processing or pork-processing plants in the continental U.S. between Jan. 1, 2000, and Feb. 27, 2024. Upon court approval, if granted, class members will be allowed to submit claims.

Prior settlements include $72.5 million with Tyson, $55 million with JBS, $4 million with American Foods, $10 million with Seaboard Foods and $1.25 million with Perdue. The firm continues to litigate against seven remaining defendants, and three motions for preliminary approval remain pending before the court, with defendants Tyson, JBS and American Foods. The filing also seeks to certify the National Beef, Cargill and Hormel settlement classes and appoint Hagens Berman and other interim co-lead firms as settlement class counsel.

Learn more about the firm's antitrust case against the nation's largest red meat processing companies.

About Hagens Berman

Hagens Berman is a global plaintiffs' rights complex litigation law firm with a tenacious drive for achieving real results for those harmed by corporate negligence and fraud. Since its founding in 1993, the firm's determination has earned it numerous national accolades, awards and titles of "Most Feared Plaintiff's Firm," MVPs and Trailblazers of class-action law. More about the law firm and its successes can be found at www.hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.

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