Dairy Antitrust – Export Assistance

WHAT’S THE ISSUE?

Hagens Berman’s antitrust team is investigating price-fixing in the dairy industry involving major brands collectively controlling 70% of nationwide milk production. According to attorneys, heavy consolidation of the U.S. dairy industry has led to anticompetitive monopolization, violating federal laws. Allegedly, this cartel of dairy cooperatives “works to artificially fix, maintain, suppress, or raise prices in the market.” These output restraints together with a concerted effort to export massive amounts of milk-intensive cheese, create an artificial supply shortage, driving up the cost of dairy for everyday U.S. consumers.

HOW DO I KNOW IF I'M AFFECTED?

If you purchased any cheese and other dairy products since Jan. 1, 2018, you may have paid higher prices due to this alleged price-fixing. Contact our team to find out more »

WHY DOES DAIRY MILK AND CHEESE COST SO MUCH?

Attorneys are investigating the alleged actions of Cooperatives Working Together (CWT), an entity including National Milk Producers Federation, Dairy Farmers of America Inc., Land O’Lakes Inc., Darigold, Tillamook County Creamery and nearly two dozen other dairy producers controlling the majority of U.S. dairy. Dairy Farmers of America is the largest supplier of raw milk in the world, the third largest global dairy company, and the largest U.S. dairy company.

According to the investigation, the milk industry has worked in lockstep together to artificially effect the supply and therefore price of dairy. In this scheme that began in 2010, first, milk supply is limited through its use to make cheese, a milk-intensive process. Then, CWT allegedly exports massive amounts of cheese to suppress domestic supply, resulting in increased cost of all dairy products. “Because it takes a substantial amount of milk in order to make cheese, the collusive mass export of cheese by the Defendants causes a greater impact on the price of cheese (and all other dairy products) than a supply restraint specific to solely fluid milk.”

If you believe you’ve been impacted by the dairy industry’s allegedly concerted effort to raise prices of milk and cheese, fill out the form to find out your rights.

WHAT SHOULD CONSUMERS KNOW ABOUT ALLEGED DAIRY PRICE-FIXING?

According to public statements issued by CWT:

1. In 2012, it announced that 94% of the cheese CWT has helped members sell through October 2012 is scheduled to be shipped and delivered before the end of the year.
2. In 2013, as it continued export assistance, it announced that since the start of 2011, the CWT program had helped member cooperatives sell 257.7 million pounds of American-type cheeses and 111.5 million pounds of butter to 39 countries on six continents.
3. In 2015 at another juncture of continuing its export program, CWT estimated that the U.S. was exporting the equivalent of one-seventh of its milk production.
4. In 2018 as it again announced the continuation of its program, CWT stated, since the export assistance program’s inception in 2003, it helped members sell 887 million pounds of dairy products, the equivalent of more than 11.1 billion pounds of milk.

“Collectively, each of these press releases represent an agreement by the Defendants to continue their conspiracy to restrain the domestic supply of milk,” according to attorneys.

HOW CAN A CLASS-ACTION LAWSUIT HELP STOP PRICE-FIXING?

A class-action lawsuit allows the millions of individuals and everyday families who buy dairy products to collectively seek accountability for price-fixing of an American staple food. Attorneys seek to hold the dairy industry accountable for this alleged price-fixing, and previous cases have also brought monetary outcome: CWT has settled antitrust litigation for nearly $272 million with various sets of plaintiffs over the last decade. A class action would also seek for the court to put an end to defendants’ unlawful conduct, ending price inflation.

NATIONAL CONSUMER RIGHTS LAW FIRM

Hagens Berman is one of the nation’s most well-known plaintiffs’ law firms and has secured total settlements valued at more than $345 billion for consumers and others against some of the world’s most powerful corporations. In 2017, the firm secured a $52 million settlement resolving claims against the dairy industry related to an alleged conspiracy to fix the price of milk via the premature slaughtering of dairy cattle. Hagens Berman’s lawsuit against Wal-Mart successfully sought reimbursement for consumers who purchased mislabeled Great Value organic dairy. The firm is also actively involved in ongoing litigation on behalf of Southwest dairy farmers for cooperatives’ price-fixing harming their profits. In that matter, the firm has so far secured $34.4 million in settlements. If you have a claim, it will be handled by attorneys with deep experience in consumer protection law. Prior results do not guarantee a similar outcome.

NO COST TO YOU

In no case will any class member ever be asked to pay any out-of-pocket sum. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team.