Antitrust Law Daily Wrap Up, ANTITRUST NEWS: $7.75 million settlement reached with Clemens Food in pork price fixing case, (May 20, 2025)

By Martin A. Steinberg, J.D.

Clemens Food and other pork producers allegedly conspired to restrict pork supply and inflate prices.

Commercial and institutional indirect pork purchasers (CIIPPs) have filed a motion for preliminary court approval of a $7.75 million class action settlement with Clemens Food Group, LLC, and The Clemens Family Corporation. The settlement resolves claims that Clemens conspired with other pork producers to restrict pork supply and inflate prices, violating antitrust laws. The agreement, reached after extensive litigation and arm’s-length negotiations, provides monetary and non-monetary relief and preserves the CIIPPs’ rights to pursue claims against non-settling defendants. The accompanying memorandum of law in support of the motion argues that the settlement is fair, reasonable, and within the range of possible court approval, and requests class certification consistent with a previous court order while also seeking to defer submission of a detailed notice plan until a later date (In Re Pork Antitrust Litigation, No. 0:18-cv-01776-JRT-JFD (D. Minn. May. 19, 2025)).

Background. Beginning in 2018, various individual and class antitrust actions were filed in multiple courts against major American pork producers, alleging, among other things, price-fixing conspiracy. Also named as a defendant in addition to these producer defendants was Agri Stats, Inc., a benchmarking company that collects, assembles, and provides data to the U.S. pork and broiler chicken industries. The CIIPPs allege that Agri Stats provided highly sensitive “benchmarking” reports to most Pork integrators, allowing competitors to compare their profits or performance against that of other companies. The effect of this anticompetitive exchange of non-public information allegedly allowed Pork integrators to control the supply and price of Pork. The CIIPPs allege that they paid artificially inflated prices for Pork during the Class Period.

Three plaintiff classes were certified in the course of the multidistrict litigation: (1) the Direct Purchaser Plaintiffs (DPPs); (2) the Consumer Indirect Purchaser Plaintiffs (Consumer IPPs); and (3) the Commercial and Institutional Indirect Purchaser Plaintiffs (Commercial IIPPs). In addition to these certified classes, dozens of plaintiffs opted out of the certified classes, the Direct-Action Plaintiffs (DAPs). The U.S. Department of Justice also filed a statement of interest in the litigation last year, arguing that information sharing alone can violate antitrust laws.

Class counsel. The court granted the initial motions to dismiss the complaints, with leave to amend, in August 2019. On October 16, 2020, the court declined to dismiss the CIIPPs Third Consolidated Amended Complaint, except for specific state-law claims. The CIIPPs filed their Fourth Consolidated Amended Complaint on June 15, 2021. On March 29, 2023, the court certified CIIPP classes.

This is the fifth settlement the CIIPPs have negotiated. Combined with the CIIPPs’ earlier settlements with defendants JBS, Smithfield, Seaboard, and Hormel, this settlement would bring the total monetary relief to more than $66 million.

Arms-length. This settlement with Clemens occurred after years of substantial adversarial litigation in this MDL. The CIIPPs’ counsel was well-informed, and the Settlement Agreement with Clemens arose from arm’s-length and good-faith negotiations. The settlement includes a $7.75 million payment from Clemens and non-monetary relief such as assistance with trial preparation and agreement to comply with antitrust laws. The agreement defines two classes of claimants (an injunctive class and a damages class), includes Illinois as a new eligible jurisdiction, and preserves claims against non-settling defendants. The CIIPPs argue the settlement is fair, reasonable, and in the best interest of the class members, especially given the complexity, expense, and uncertainty of continued litigation.

Clemens cooperation. Clemens further agrees to assist with the authentication of Clemens documents that CIIPPs may use at trial and provide CIIPPs with the same access to potential trial witnesses as any non-settling Defendant. Clemens also agrees to continue complying with federal antitrust laws.

Settlement classes. The Court previously granted the CIIPPs’ motion for class certification and certified a damages class and an injunctive relief class. The Settlement Agreement defines the Certified Classes as follows:

Injunctive Class: All entities that indirectly purchased uncooked pork bacon, or one or more of the following types of raw pork, whether fresh or frozen: loins, shoulder, ribs, hams, or pork chops from defendants or co-conspirators for their use in commercial food preparation in the United States from June 28, 2014, to June 30, 2018. For this lawsuit, pork excludes any product that is marketed as organic and/or no antibiotics ever, and any product other than bacon that is marinated, seasoned, flavored, or breaded, but it includes uncooked and cooked ham, water-added products.

Damages Class: All entities that indirectly purchased uncooked pork bacon, or one or more of the following types of raw pork, whether fresh or frozen: loins, shoulder, ribs, hams, or pork chops from defendants or co-conspirators for their use in commercial food preparation in the Repealer Jurisdictions from June 28, 2014, to June 30, 2018. For this lawsuit, pork excludes any product that is marketed as organic and/or no antibiotics ever, and any product other than bacon that is marinated, seasoned, flavored, or breaded, but it includes uncooked and cooked ham, water-added products.

Settlement is beneficial. The settlement agreement will achieve an excellent result for the certified classes, particularly given the expense, duration, and uncertainty of continued litigation. Antitrust class actions are “arguably the most complex action(s) to prosecute. The legal and factual issues involved are always numerous and uncertain in outcome.” Clemens has asserted various defenses, and a jury trial might turn on close questions of proof, many of which would be the subject of complicated expert testimony, particularly regarding damages, making the trial outcome uncertain for both parties. Moreover, given the stakes involved, an appeal would almost certainly follow regardless of the outcome at trial.

The Class asks the court to: (1) grant preliminary approval of the settlement; (2) certify the defined classes; (3) allow CIIPPs to submit a notice plan at a later date. A final fairness hearing will be requested in a future filing.

The Case is No. 0:18-cv-01776-JRT-JFD.

Judge: Tunheim, J.

Attorneys: Antonia Konkoly (Lockridge Grindal Nauen PLLP) for Plaintiffs. Behdad C. Sadeghi (Zimmerman Reed LLP) for Plaintiffs. Robert N. Kaplan (Kaplan Fox & Kilsheimer LLP) for Plaintiffs. Anne Lee (Covington & Burling LLP) for Agri Stats, Inc. Amarto Bhattacharyya (Kirkland & Ellis LLP) for Clemens Food Group, LLC. Aaron D. Van Oort (Faegre Drinker Biddle & Reath LLP) for Hormel Foods Corp.

Companies: Agri Stats, Inc.; Clemens Food Group, LLC; Hormel Foods Corp.

News: Antitrust MinnesotaNews GCNNews