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Like a pressure valve releasing years of legal steam, Tyson Foods $82.5 million settlement has emerged in a sweeping antitrust fight accusing the meat giant of helping drive up U.S. beef prices by tightening supply.

The proposed class-action settlement was disclosed Wednesday in filings before the U.S. District Court for the District of Minnesota, where grocers and other businesses have accused Tyson of conspiring with competitors to inflate beef prices nationwide.

Allegations of Supply Manipulation

The lawsuit alleges that Tyson and several other major beef producers coordinated to restrict supply and boost prices for retail-ready cuts, also known as edible boxed beef, between 2015 and 2022.

Plaintiffs include grocery stores, food distributors and other businesses that purchased beef products directly from Tyson. Among them are Pennsylvania-based Redner’s Markets and Mississippi-based R&D Marketing.

Attorneys for the plaintiffs said in court filings that they are finalizing a settlement agreement to submit to a judge for approval.

Silence From the Parties

Tyson Foods and attorneys representing the beef purchasers did not immediately respond to requests for comment following the disclosure.

Lawyers for the plaintiffs estimate that thousands of so-called direct purchasers are members of the proposed settlement class.

Second Major Deal for Direct Purchasers

The Tyson agreement marks the second settlement involving direct purchasers in the sprawling litigation. In 2022, JBS USA agreed to pay $52.5 million to resolve similar claims, while denying any wrongdoing. That deal was approved by a judge.

Tyson and JBS are the two largest defendants in the case. Two remaining defendants — Cargill and National Beef — did not immediately respond to requests for comment.

Tyson’s Growing Settlement Tally

Arkansas-based Tyson, the largest meat producer in the United States, has already settled related consumer beef price-fixing claims for $55 million.

Separately, the company agreed earlier this year to pay $85 million to resolve a proposed consumer class-action lawsuit alleging a conspiracy with rivals to inflate pork prices.

Case Details and Legal Teams

For the plaintiffs:
Daniel Gustafson of Gustafson Gluek; Adam Zapala of Cotchett, Pitre & McCarthy; Jason Hartley of Hartley LLP; and Megan Jones of Hausfeld.

For Tyson:
Susan Foster of Perkins Coie and John Terzaken of Simpson Thacher & Bartlett.

As the gavel inches closer to approval, the Tyson Foods $82.5 million settlement underscores how allegations of price manipulation can ripple through the food supply chain, leaving billion-dollar companies negotiating over pennies per pound.