Multiple red meat processing companies have reached settlements totaling $200.2 million in response to a lawsuit accusing them of engaging in wage-fixing over several years, as reported by Hagens Berman attorneys. On September 5, 2024, a motion was filed in the U.S. District Court for the District of Colorado seeking preliminary approval for settlements with National Beef Packing Co. for $14.2 million, Cargill Meat Solutions Corp. for $29.75 million, and Hormel Foods Corp. for $13.5 million. These are the seventh, eighth, and ninth settlements in the case.
The class action lawsuit claims that these companies violated federal antitrust laws, specifically the Sherman Act, by using various methods to manipulate wages, keeping them lower than market rates. “We anticipate the court’s preliminary approval so class members can start receiving the compensation they deserve,” said Shana Scarlett, partner at Hagens Berman, emphasizing the firm’s continued efforts to seek recovery from the remaining defendants.
The affected workers span various roles, including those involved in slaughtering, cutting, repairing machines, and supervising production lines.
Cargill, while denying any wrongdoing, agreed to the settlement to avoid escalating legal costs and disruptions. The company stated it independently sets wages to ensure fair compensation at its plants. Hormel Foods similarly denied any liability but opted to settle to sidestep the risk, cost, and uncertainty of ongoing litigation. Both companies stressed their commitment to focusing on long-term growth and investment.
The lawsuit was originally filed in 2022 by Hagens Berman against 18 major defendants, including JBS USA Food Co., Tyson Foods Inc., Cargill, Hormel, and several others. It alleges that since 2014, these companies colluded to suppress wages for production and maintenance workers in violation of federal law. Tactics included secret meetings, the exchange of sensitive compensation data, and collaboration with third-party data-sharing firms.
The case mirrors a similar wage-fixing lawsuit targeting the U.S. poultry processing industry. Previous settlements in this case include $72.5 million from Tyson, $55 million from JBS, $4 million from American Foods, $10 million from Seaboard Foods, and $1.25 million from Perdue. The firm continues to litigate against seven other defendants, with three additional settlement motions pending approval.
