"It's my role to report. It's your role to press for reforms"
Thursday, June 9, 2022
Now it’s a beef price-fixing lawsuit
The Giant Eagle supermarket chain in the
Chicago area has filed a lawsuit against four large beef-packing companies,
alleging they colluded to limit wholesale supplies of beef in a plan to push
The antitrust complaint was filed Wednesday in
the U.S. District Court in Chicago against Cargill, JBS, National Beef Packing,
Tyson Foods and several subsidiaries.
The lawsuit covers the time between January,
2015, and the end of 2021.
The suit notes that the U.S. Department of
Justice and United States Department of Agriculture have launched
investigations into whether the processors fixed beef prices and argues
"anticompetitive practices" in the highly concentrated industry have
attracted congressional scrutiny.
"These practices intentionally led to
shortages in the beef market. These artificial conditions, in turn, boosted the
prices defendants (beef packers) charged, and which Giant Eagle had no choice
but to pay, for beef.
“The results intended and achieved by defendants
were higher profit margins (e.g., meat margins) than would have otherwise
existed in a competitive market, and injury and damage to Giant Eagle’s
businesses and property," the suit alleges.