The Net Settlement Funds (fifth distribution) for the Dean and SMA/Baird settlement were distributed on December 15, 2016.
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The Net Settlement Fund with Defendants Dairy Farmers of America,
Dairy Marketing Services, Mid-Am Capital, National Dairy Holdings, LP, and Gary
Hanman distributed on December 19, 2013.
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This website provides general information on a dairy farmer class action involving
raw Grade A milk sales in the Southeast.
For more information on the Northeast Dairy Farmer Settlement Click Here.
What Is the Case About?
The lawsuit claims Defendants and alleged Co-Conspirators violated federal antitrust
laws in the purchase, sale, and marketing of raw Grade A milk in Federal Milk Marketing
Orders 5 and 7. The lawsuit also claims Defendant Dairy Farmers of America, Inc.
(“DFA”) breached the contractual terms of its membership agreement and bylaws by
failing to operate for the benefit and advantage of its members as farmers. As a
result, the lawsuit claims prices paid to dairy farmers in Orders 5 and 7 for raw
Grade A milk were lower than they otherwise would have been. Defendants deny that
they did anything wrong.
- Defendants: Dean Foods Co., DFA, Dairy Marketing Services, LLC (“DMS”),
Mid-Am Capital, LLC (“Mid-Am”), National Dairy Holdings, LP (“NDH”), Southern Marketing
Agency, Inc. (“SMA”), James Baird, and Gary Hanman (“Haman”)
- Alleged Co-Conspirators: Dairy.com, Inc., The Kroger Co., Prairie
Farms Dairy, Inc., Robert W. Allen, Jay Bryant, Herman Brubaker, Gregg L. Engles,
Michael J. McCloskey, Allen A. Meyer, and Pete Schenkel.
- Orders 5 and 7 (“Southeast”): All of Alabama, Arkansas, Georgia, Mississippi,
Louisiana, North Carolina, South Carolina, and Tennessee, and parts of Florida,
Kentucky, Indiana, Missouri, Virginia, and West Virginia.
Who Is in the Class?
In general, all dairy farmers, whether individuals or entities, who produced Grade
A milk within Orders 5 or 7 and sold Grade A milk directly or through an agent to
Defendants or Co-Conspirators in Orders 5 or 7 during any time from January 1, 2001
to the present.
The Class has two parts: a “DFA Settlement Subclass” and an “Independent Subclass”
defined below:
- Independent Dairy Farmer and Independent Cooperative Member Subclass (“Independent
Subclass”) - All independent dairy farmers and independent cooperative members
(whether individuals or entities) who produced Grade A milk within Orders 5 or 7
and sold Grade A milk directly or through an agent to Defendants or Co‐Conspirators
in Orders 5 or 7 during any time from January 1, 2001 to the present. The terms
“independent dairy farmer” and “independent cooperative member” refer to Southeast
dairy farmers who were not members of DFA at the time of their Grade A milk sales.
- DFA Member Dairy Farmer Subclass (“DFA Settlement Subclass”) - All DFA members
(whether individuals or entities) who produced Grade A milk within Orders 5 or 7
and sold Grade A milk directly or through an agent to Defendants or Co‐Conspirators
in Orders 5 or 7 during any time from January 1, 2001 to the present. The term “DFA
member dairy farmer” refers to Southeast dairy farmers who were members of DFA at
the time of their Grade A milk sales.
Are there any settlements?
On January 21, 2013 the Court was asked to approve a proposed settlement with Defendants
DFA, DMS, NDH, Mid-Am, and Hanman. This settlement is in the amount of 158.6 million
dollars, plus changes in the way these Defendants conduct their business in the
Southeast. If approved by the Court, the settlement will provide payments to dairy
farmers who submit valid claim forms and you may be eligible. More details will
be available in the Notice that will be mailed in early February of 2013.
A $140 million settlement with Dean and a settlement with SMA and Baird for $5 million
plus certain structural changes were previously approved by the Court and distribution
of the Settlement Funds occurred on January 18, 2013.
Who represents the Class?
The Court appointed the following law firms as Class Counsel to represent the Class:
Independent Subclass
Robert G. Abrams
BAKER & HOSTETLER LLP
1050 Connecticut Avenue, N.W.
Washington, D.C. 20036
(202) 861-1500
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DFA Subclass
Gary E. Brewer
BREWER & TERRY, P.C.
1702 W. Andrew Johnson Hwy.
Morristown, TN 37814
(423) 587-2730
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What are your Options for the Proposed Settlement with Defendants DFA, DMS, NDH,
Mid-Am, and Hanman?
Stay in the Class: If you are a Member of the Class currently certified,
you do not have to do anything to stay in the Class.
Get Back in the Class for the settlement: If you previously decided
you did not want to participate in the lawsuit and excluded yourself – you may apply
to the Court to be reinstated (“opt back in”) to the Class for the purpose of participating
in the proposed settlement. If you excluded yourself and do not opt back in, you
will not receive any benefit that may be obtained as a result of this lawsuit. You
also will not be bound by any Court orders or jury verdicts and you keep your right
to sue Defendants DFA, DMS, NDH, Mid-Am, and Haman, and Gerald Bos, on your own
regarding the issues in this case.
To opt back into the class: You must mail a letter that says you previously excluded
yourself from the Southeastern Milk Class but wish to opt back in. Include your
name, your address, the name of your farm, the farm’s address, your telephone number,
and signature(s) of all farm owners. Your request to opt back in must be submitted
to the Class Action Administrator, along with a completed and signed Claim Form,
received no later than March 20, 2013. Mail requests
to opt back in to:
SE Dairy Farm Class – Opt Back In
c/o Rust Consulting, Inc.
P.O. Box 2392
Faribault, MN 55021-9092
Object to the Settlement: Any Member of the Class who objects to the
proposed settlement with Defendants DFA, DMS, NDH, Mid-Am, and Haman must do so
in writing. Objections must contain caption of the case, be signed, and be filed
with the Court no later than fourteen (14) days prior to the April 3, 2013 Fairness
Hearing. The Notice that will be mailed in February of 2013 will provide more information
on filing an objection.
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