US buyers sue potato processors over alleged price-fixing scheme
By Mike Scarcella
Nov 18 (Reuters) -Four of the largest potato processors in the United States were accused in a pair of new lawsuits of conspiring to overcharge grocery stores, other commercial buyers and consumers for years.
Lamb Weston LW.N, McCain Foods, J.R. Simplot and Cavendish Farms illegally fixed prices for frozen French fries, hash browns, tater tots and other products, Pennsylvania grocery chain Redner’s Markets alleged in a lawsuit filed on Friday in Chicago federal court.
The same companies, as well as marketing group Potatoes USA, were separately sued on Sunday in a proposed consumer class action over similar claims in the same court.
The defendants did not immediately respond to requests for comment on the lawsuits, which allege violations of U.S. antitrust law.
The four companies dominate the $68 billion annual frozen potato products market, the plaintiffs said.
The lawsuits said the companies shared competitively sensitive commercial data with a third-party industry group that provides market snapshots. They contend such data-sharing disincentivized the companies from competing.
According to Redner’s, the price of frozen potato products rose 47% from July 2022 to July 2024. It said input costs “significantly declined” during that period.
The frozen potato manufacturers’ cartel relied on trade industry conferences to unlawfully coordinate on pricing, according to the lawsuits.
The cases seek unspecified monetary damages and a court order ending the alleged price-fixing.
The cases are Redner’s Markets Inc v. Lamb Weston Holdings et al, U.S. District Court, Northern District of Illinois, No. 1:24-cv-11801.
Read more:
McDonald's sues major beef producers in US price-fixing lawsuit
Kraft, others to seek damages after winning US egg-pricing verdict
Major sugar producers sued over alleged US price-fixing scheme
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
