In a significant development, meat-processing titans Cargill, National Beef Packing, and Hormel Foods have agreed to a combined $57.4 million settlement to resolve allegations of wage suppression at their plants. This settlement is part of a larger class-action lawsuit that accuses these companies of conspiring to keep wages low for thousands of red meat processing workers across 140 facilities.
The lawsuit, filed in 2022, alleges that these companies, along with two consulting firms, violated antitrust laws by exchanging confidential compensation data through industry surveys and other methods. This legal agreement brings the total settlements in this case to over $200 million.
Cargill has committed to paying $29.75 million, National Beef Packing will contribute $14.2 million, and Hormel Foods has agreed to $13.5 million. Cargill and Hormel have both stated that their settlements are a strategic decision to avoid further litigation costs and disruptions, while National Beef did not respond to requests for comment. All three companies deny any wrongdoing.
The settlements also include provisions for cooperation with ongoing litigation, with the companies agreeing to provide documents and witnesses for future claims against other defendants such as Smithfield.
In addition to these recent agreements, Tyson Foods and JBS have previously settled similar claims, with Tyson agreeing to $72.25 million and JBS committing to $55 million. These settlements are awaiting court approval.
Plaintiffs’ attorneys noted that the settlements will provide substantial relief and streamline the litigation process by focusing on fewer remaining defendants. They also mentioned the possibility of seeking legal fees from the settlement fund.
This case, known as Ron Brown et al v JBS USA Food Company et al, is being heard in the U.S. District Court for the District of Colorado. The plaintiffs’ legal team has previously secured over $200 million in settlements in a related case involving poultry workers.
