US: Dairy industry must face-up to price-fixing class action

The dairy industry will now face a class action accusing raw-milk producers of hiking prices of various dairy products, say reports.

A US district judge granted the case class certification earlier this month in a lawsuit that covers 14 states and Washington, D.C. Plaintiffs claim the National Milk Producers Federation of violating antitrust law by limiting raw-milk production to drive up prices of yogurt, sour cream and other products.

The suit was first filed in 2011 and accused members of the Federation of using premature “herd retirements” to limit the supply of raw milk. The suit alleges the collusion to be a nationwide conspiracy, say reports.

Further, the case claims, members of the dairy cooperative were required to destroy their dairy cows and agree to stay out of the market for a year.

The group is claiming antitrust immunity from the charges, say reports, but a judge did not comment on this defense in his decision to grant the case class certification.

Full content: Courthouse News Service

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