McDonald's Says Tyson and Other Suppliers Fixed Beef Prices
McDonald’s is suing some of its suppliers over allegations they conspired to sell the fast-food chain beef at artificially inflated prices, in violation of federal antitrust laws, according to a new lawsuit Friday.
McDonald’s Corp. alleges the suppliers coordinated to fix, raise, stabilize, or maintain the price of beef at “supracompetitive levels.” The nine suppliers, which include companies like Tyson Foods Inc., JBS SA, and Cargill Inc., violated the Sherman Act through their conduct, McDonald’s said in its complaint in the US District Court for the Eastern District of New York.
“Defendants and their co-conspirators implemented their conspiracy by collusively reducing the slaughter-ready cattle and beef supply, which over time artificially elevated the price of beef that they sold to Plaintiff and others,” McDonald’s said.
McDonald’s wants a declaratory judgment affirming the conspiracy’s existence, damage awards three times the amount the damages it sustained, and pre-judgment and post-judgment interest, according to the complaint. They also ask the district court to enter a permanent injunction to indefinitely enjoin the defendants from continuing their conduct.
