CHICAGO — Cargill Inc. has agreed to pay $32.5 million to settle a class action lawsuit accusing the company and several other processors of conspiring to fix turkey prices. The agreement, filed on Jan. 15 with the US District Court for the Northern District of Illinois, awaits court approval.
Cargill’s deal with a group of direct purchaser plaintiffs is the second reached in the ongoing litigation. It comes nearly four years after the first deal was struck in 2021 when Tyson Foods Inc. agreed to pay $4.625 million.
Similar to Tyson’s previous settlement, Cargill has agreed to “provide meaningful cooperation” in addition to the monetary relief as the direct purchaser plaintiffs continue prosecution against the remaining defendants.
Companies named in the suit who have yet to settle include Agri Stats Inc., Butterball, Cooper Farms, Hormel Foods, Farbest Foods and Foster Farms.
With settlement payments from both Cargill and Tyson, total monetary recovery is now $37.125 million. The total represents approximately $1 million per market share point. The direct purchaser plaintiffs have requested permission from the court to begin distributing the funds.
A fairness hearing for the settlement has been requested, at which time, all claims against Cargill will be dismissed if approved by the court.