MINNEAPOLIS – JBS USA, a unit of São Paulo, Brazil-based JBS S.A., agreed to pay $25 million to settle a lawsuit brought by a class of indirect purchasers that accused the beef processor of engaging in a conspiracy with competitors to artificially constrict the supply of boxed and case-ready beef products. The agreement is subject to a judge’s approval.

Under the terms of the agreement, JBS also agreed to cooperate in other cases against companies that have not settled.

Among other actions, JBS agreed "... to use its best efforts to make available up to three current employees of JBS at Interim Co-Lead Counsel’s choosing as live witnesses at trial."

Furthermore, JBS agreed “... to use reasonable efforts to authenticate, and lay an evidentiary foundation for admissibility to, documents or things produced by JBS where the facts indicate that the documents or things are authentic as may be necessary for the admission of such information in the litigation.”

The original complaint alleged JBS conspired to constrain the supply, and fix the price, of beef from at least 2015. JBS accomplished the conspiracy “… through collusion at trade association conferences and industry events between executives and key employees, and through ensuing collusive relationships,” court documents said.

“Defendants’ own transaction and slaughter data, their public calls for industrywide slaughter and capacity reductions, and measurable market conditions confirm the existence of the unlawful price fixing agreement,” the court document stated. “The effect of this anti-competitive behavior was to increase Defendants’ margins at the expense of other market participants.”

This is the second settlement JBS has reached in this case – in 2022 the company agreed to pay $52.5 million to settle a lawsuit brought by direct purchasers. JBS did not admit liability for the alleged claims in that case.