Dairy farm cooperatives settle milk price-fixing lawsuit for $34 million
The preliminary settlement, opens new tab was filed on Thursday in federal court in New Mexico and requires a judge's approval.
Dairy Farmers of America will pay $24.5 million and Select Milk Producers agreed to pay $9.9 million, the settlement papers showed.
Cooperatives play a central role in the marketing of milk and other dairy products in the United States. Dairy farmers who filed the lawsuit in 2022 said the two cooperatives underpaid them for the production of raw fluid Grade A milk, in violation of U.S. antitrust law.
Dairy Farmers of America and Select Milk Producers have denied any wrongdoing.
In a statement, Dairy Farmers of America said 'the unique complexity of the case — combined with escalating costs and ongoing disruption — made resolving this now the prudent path forward,' and that settling allowed the organization to focus on its mission.
The plaintiffs' attorneys declined to comment. A lawyer for Select Milk did not immediately respond to requests for comment.
Lawyers for the plaintiffs in a court filing called the proposed settlement amount 'significant,' and said it will end potentially risky further litigation over whether the lawsuit can move ahead as a class action.
The settlement includes certain dairy farmers who produced and sold Grade A milk in parts of Kansas, Oklahoma, Arizona, Texas and New Mexico from January 2015 through June 2025.
Dairy Farmers of America in 2015 agreed to pay $50 million to resolve a class action from farmers in the northeastern United States accusing the cooperative of conspiring to suppress milk prices.
The cooperative settled a similar case in 2013 for $140 million involving farmers in the southeastern United States.
The case is Othart Dairy Farms LLC v. Dairy Farmers of America Inc et al, U.S. District Court for the District of New Mexico, No. 2:22-cv-00251-SMD-DLM.
For plaintiffs: W. Joseph Bruckner and Brian Clark of Lockridge Grindal Nauen; Steve Berman and Shana Scarlett of Hagens Berman Sobol Shapiro; and David Scott and Patrick McGahan of Scott + Scott Attorneys at Law
For Dairy Farmers of America: Alfred Pfeiffer Jr and Sarah Ray of Latham & Watkins; and W. Todd Miller of Baker & Miller
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