According to the lawsuit, the defendants "formed regional and national cooperatives [in 2004] for the sole purpose of creating a national vehicle for potato growers and their co-conspirators ... to reduce potato output and fix prices."
The plaintiffs also allege that the defendants are not protected under the Capper-Volstead Act of 1922, 7 U.S.C. sections 291-292. The Capper-Volstead Act "provides limited exemption from antitrust laws to agricultural producer cooperatives."
Another lawsuit filed on June 23 against the United Potato Growers and others "is intended to represent consumers, or indirect purchasers."
Both lawsuits are seeking class-action status and treble damages.
For more information on cooperatives, click here.
To read The Packer story, click here.
To read the complaint in the lawsuit filed on June 18, click here.
Posted: 07/06/2010
