JBS USA has agreed to an $83.5 million settlement to resolve allegations that it conspired with other major meat producers to suppress the prices paid to cattle ranchers for feeder cattle. The proposed class of ranchers filed a motion on Jan. 31 in Minnesota federal court seeking preliminary approval of the deal, emphasizing that negotiations were serious, hard-fought, and conducted at arm’s length with the assistance of well-known mediator Miles Ruthberg.
The ranchers’ legal team asserted that after years of litigation, they had a clear understanding of the strengths and weaknesses of their case against JBS heading into settlement discussions.
A Decade-Long Legal Battle Nears Resolution
This settlement would mark a significant step toward resolving claims that have been pending for nearly a decade. However, it does not end all litigation tied to alleged price-fixing by the “Big Four” meat producers—JBS, Tyson Foods, Cargill, and National Beef Packing Co.
The case is part of a broader multidistrict litigation (MDL), with at least six related lawsuits consolidated in Minnesota federal court in 2022. The JBS settlement applies only to one of those six cases, leaving other claims against the major meat producers ongoing.
Legal Challenges and Setbacks in Parallel Cases
Not all cases in the mini-MDL have progressed smoothly. This past summer, the overseeing judge dismissed price-fixing claims in another case for the second time, citing insufficient evidence that the plaintiffs were directly impacted by the alleged scheme. That ruling emboldened meat producers to argue that the ranchers should not be given another opportunity to amend their claims.
