Potato Growers Confident in Price-Fixing Lawsuit

The Packer reports that the "United Potato Growers of America says it is confident the group will prevail in an expanding legal battle in which the co-operative and others are accused of engaging in 'classic cartel behavior' to control potato supplies and fix prices at artificially high levels."

Five different lawsuits have been filed against the United Potato Growers of America alleging this behavior.  For background on the lawsuits, click here to read a past US Ag&Food Law and Policy Blog post on the subject.  "Recently, the five cases were referred to the U.S. Judicial Panel on Multidistrict Litigation, which decides whether civil lawsuits in different districts can be consolidated into one district.  The panel's hearing was Sept. 30 in Nashville, Tenn., but as of Oct. 8, no decision had been announced."

"According to the lawsuits' claims, the defendants in 2004 formed regional and national United Potato cooperatives for the 'sole purpose of creating a national vehicle for potato growers and their co-conspirators ... to reduce potato output and fix prices."

Barb Shelley, spokeswoman for the United Potato Growers said that the group is careful to ensure that it is in compliance with the law and that they are confident that they will prevail.

To read The Packer story, click here.

Posted: 10/12/2010