Two Canadian food companies sued in U.S. over ‘potato cartel’ allegations

Two projected class-action lawsuits successful the United States sanction 2 Canadian nutrient companies arsenic alleged members of a “potato cartel” that’s accused of a years-long run of fixing prices connected frozen products.

The suits, which person yet to beryllium certified, were some filed past week successful U.S. District Court successful Illinois and sanction Canada’s McCain Foods Ltd. and Cavendish Farms, a subsidiary of J.D. Irving Ltd., alongside U.S.-based companies Lamb Weston Holdings and J.R. Simplot Co.

The projected people actions allege that each of the 4 companies, which are estimated to relationship for up to 98 per cent of the frozen murphy products market, “confirmed to hole the prices” of specified products “above competitory levels.”

“Armed with the aforesaid entree to each other’s information connected pricing and different delicate information, arsenic good arsenic with a nonstop enactment of connection to each other, the murphy cartel moves prices skyward successful lockstep – harming each purchasers of potatoes successful the process,” 1 of the claims alleges.

Products successful the alleged strategy see frozen gallic fries, hash browns and tater tots.

Frozen murphy merchandise prices grew 47 per cent betwixt July 2022 and July 2024, according to the suit filed Friday connected behalf of supermarket concatenation Redner’s Markets Inc. At the aforesaid time, the 4 defendants’ input costs “fell steadily,” the suit claims.

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“The frozen murphy products terms hikes successful 2021 and 2022 were nary accident. Rather, the defendants imposed matching, simultaneous oregon near-simultaneous terms increases connected their customers,” the Redner’s suit alleges.

A abstracted suit was filed Sunday connected behalf of Alexander Govea, a user surviving successful Virginia. That suit besides names selling radical Potatoes USA and analytics steadfast Circana arsenic portion of its projected people action.

The suits are seeking damages connected behalf of each consumers and businesses who purchased frozen murphy products from the defendants successful the U.S. from 2021 done to the contiguous day, arsenic good arsenic an extremity to the alleged conduct.

Global News reached retired to the 4 murphy merchandise manufacturers named successful the suits for remark connected the allegations. Only McCain Foods responded earlier property time.

“McCain Foods powerfully disputes immoderate allegation that the institution violated antitrust laws, oregon immoderate different laws, with respect to the merchantability of frozen murphy products,” Charlie Angelakos, the company’s vice-president of planetary outer affairs and sustainability, said successful a statement.

“McCain Foods intends to vigorously support the precocious filed lawsuits truthful that it tin absorption connected what we bash best: delivering precocious quality, affordable nutrient to customers nationwide.”