LINCOLN, Neb. (DTN) -- National farm groups have asked a federal court to approve a proposed $83.5 million class action settlement with JBS, in a lawsuit that alleges the companies conspired to "fix, depress, suppress or stabilize" the price of live cattle futures and options traded on the Chicago Mercantile Exchange from 2015 to 2020.

National Farmers Union, R-CALF USA and four fed cattle producers who filed a class-action lawsuit in April 2019 against the companies asked the U.S. District Court for the District of Minnesota on Jan. 31, 2025, to preliminarily approve a proposed settlement.

Payments would be made to ranchers and feedlots that directly sold fed cattle to the companies from June 1, 2015, to Feb. 29, 2020.

In addition, all entities that held a long position in live cattle futures on the Chicago Mercantile Exchange prior to June 1, 2025, and liquidated that position prior to Nov. 1, 2016, would receive payment from the settlement.

The other defendants in the ongoing case have not reached a settlement. They include Tyson, Cargill and National Beef Company.

According to a news release from the National Farmers Union, the settlement is "not an admission of liability" by JBS who "continues to deny any wrongdoing."

If the court grants preliminary approval of the settlement, the NFU said it would order a notice be sent to the settlement classes providing details including how class members can make claims for their share of the settlement.

"We are pleased to have reached a significant milestone in the case with the JBS settlement," NFU President Rob Larew said in a statement.

"We look forward to prosecuting our claims against the remaining defendants, Tyson, Cargill and National Beef. Outside of the litigation, NFU's work to restore pricing transparency and competitiveness for family farmers and ranchers continues."

The ag groups alleged in their lawsuit that the companies leveraged their "consistent control" over the purchase of about 85% of fed cattle in the U.S.

"As a direct and proximate result of packing defendants' conspiracy and overt acts taken in furtherance thereof, packing defendants paid lower prices for fed cattle directly to producer plaintiffs and members of the producer class than they would have in a competitive market," the lawsuit said.

"At the same time, those transacting in live cattle futures and options, including certain plaintiffs, suffered significant harm as a result of defendants' conduct."

Earlier this week, JBS USA announced it was planning a $200 million upgrade to its beef-production plants in Cactus, Texas, and Greeley, Colorado.

According to a news release from JBS, the projects include a new fabrication floor and an expanded beef room at its Texas plant and a new distribution center at the Colorado facility. The two plants combined employ about 7,500 people and pay about $6 billion a year for livestock.

Todd Neeley can be reached at todd.neeley@dtn.com

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