Filed in 2019, the antitrust litigation alleged that JBS and other meat producers had conspired to “fix, depress, suppress or stabilize” the price of cattle it purchased in the US.
If approved, the proposed settlement will resolve claims from two separate groups each containing thousands of members – producers that sold cattle to JBS and parties that held positions in live cattle futures traded on the Chicago Mercantile Exchange.
The parties first engaged in an in-person mediation session in New York on 5 November 2021, but failed to reach an agreement. Further talks were not held for three years, but a mediator’s proposal was finally accepted last month.
According to Reuters, despite agreeing to settle JBS has denied any wrongdoing and called the claims about price-fixing “frivolous and without merit”.
Meanwhile, the plaintiffs called the settlement “substantively fair, providing substantial relief for all class members that submit valid claims”.
The terms of the settlement also require JBS to cooperate as the plaintiffs pursue related claims against Tyson Foods, Cargill and National Beef.
Food Manufacture has reached out to JBS for comment.
$200m investment
Elsewhere, JBS has announced plans to invest $200m in two of its beef production facilities in the US.
The Cactus, Texas, and Greeley, Colorado, sites will have new fabrication floors installed, among other upgrades.
JBS has said that the investments will provide improved efficiencies at the facilities and the potential for increased production capacity in the future.
“We believe now is the time to invest in the United States, and we are excited about what the future holds,” commented Wesley Batista Filho, the CEO of JBS USA.
“Today’s announcement demonstrates our commitment to the U.S. beef industry and the American farmer and rancher. At JBS, we prioritize ongoing investments in our facilities to ensure our company and the rural areas where we live and work are positioned for success now and in the future.”
