A federal judge in Minnesota has ruled that Sysco must uphold a $50 million settlement agreement with JBS, stemming from allegations that the meat processor engaged in anticompetitive practices.
The settlement required Sysco to release all claims against JBS once payment was made. However, in June 2023, Sysco assigned its claims to Carina Ventures, a litigation funder. In March, the court formally recognized Carina as the new plaintiff. JBS argued that Carina’s rights were still bound by the original settlement, nullifying any additional claims.
This week, the court agreed with JBS, reinforcing the original terms of the agreement and rejecting efforts to overturn the deal.
The dispute between Sysco, Carina Ventures, and JBS has highlighted growing concerns about litigation funders, with meat processors claiming these entities are focused solely on profits and have attempted to invalidate settlements to seek larger payouts.
In a related ruling, the court sided with Pilgrim’s Pride in December under similar circumstances.
