Seaboard Foods has decided not to reach settlements for the remaining antitrust lawsuits it faces, as stated in a recent filing with the U.S. Securities and Exchange Commission (SEC). The company, along with other pork producers, has been accused of conspiring to manipulate prices. In June, Seaboard Foods reached a settlement worth $9.8 million with the direct purchaser plaintiff class (DPP). However, the company is choosing to contest the allegations put forth by other class plaintiffs.
The lawsuit involves a consolidation of 27 cases that encompass 146 parties, and it centers on allegations of anticompetitive behavior by major pork processors, who collectively control over 80% of the wholesale pork market. The consolidation was ordered by Minnesota District Court Judge John Tunheim late last year.
In its SEC filing, Seaboard Foods stated, “Seaboard believes that it has meritorious defenses to the claims alleged in these matters and intends to vigorously defend any matters not resolved by the above settlement. It is impossible at this stage either to determine the probability of a favorable or unfavorable outcome resulting from these suits, or to reasonably estimate the amount of potential loss or range of potential loss, if any, resulting from the suits. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and if unfavorable, could result in a material liability.”
This decision by Seaboard Foods highlights its commitment to addressing the antitrust allegations through legal proceedings rather than opting for settlements. The company’s stance indicates a willingness to defend its position in court despite the inherent uncertainties associated with litigation outcomes.
