A class action lawsuit has been filed in Quebec Superior Court against Canada’s largest beef suppliers to the country for allegedly conspiring to restrict competition and raise the price of beef sold in the province.
Posted at 9:01 p.m.
The lawsuit was filed on March 24 by the Belleau Lapointe law firm.
“I find this situation exasperating,” said Sylvie De Bellefeuille, the main plaintiff and lawyer at Option consommateurs, in an interview.
“When we talk about meat, especially beef, it’s something that a lot of people buy for their basic food needs and when it comes to low-income people, for example, they find it difficult to buy beef, so that’s something I’m really indignant about. »
The lawsuit came after reviewing a similar national lawsuit filed in British Columbia in February that would apply across Canada, Ms.me From Bellefeuille.
The lawsuit was filed by litigation firm Camp Fiorante Matthews Mogerman on behalf of Giang Bui, a Vancouver resident who purchased beef for himself and his family.
In the motion, the law firm argued that the companies severed the economic link between the price of cattle they purchased for slaughter and the price of beef sold in Canada.
“As a result, as the price paid by defendants for cattle fell, the supply of beef was restricted and the price of beef was set at a high and anti-competitive level, causing harm to plaintiff and members of the group, while increasing the profits of the defendants and their co-conspirators. »
Lead Counsel Reidar Mogerman said the Quebec and British Columbia court cases make the same allegations.
“We are working with Quebec lawyers and ultimately there will be a coordinated national strategy,” he said from Vancouver.
The lawsuit has drawn a lot of attention because people are frustrated with the situation, Ms.me From Bellefeuille.
“It’s one thing to have higher prices because of the pandemic, but learning that there could be more and that there is collusion between these companies makes it even more unacceptable. »
The court document filed in Quebec alleges that various companies related to Cargill, JBS Canada ULC, Tyson Food and National Beef Packing acted in concert to “unduly restrict competition related to the production, supply or sale of beef” in the province since 1er January 2015.
The class action, which has yet to be certified by a judge, is asking for financial compensation equivalent to the revenue generated by the artificially inflated part of the sale prices.
The amount of compensation would likely be determined at trial, Ms.me From Bellefeuille.
But the sums could be significant if class actions are approved to represent Canadians across the country.
“Hopefully we can repay and make sure people have at least some of their share. So we’ll see how it goes, but our goal is to try to make sure people get their money back. »
The plaintiffs say packers control 85% of the Canadian beef market and 80% of the US market.
The filing comes after JBS USA agreed in early February to pay US$52.5 million to settle one of several Minnesota price-fixing lawsuits without admitting liability.
The US Department of Justice has been investigating the industry since attorneys general from 11 Midwestern states urged it nearly two years ago to look into market concentration and potential price-fixing by meat packers in the beef industry during the pandemic.
“The claims lack substantiation,” Cargill spokeswoman April Nelson wrote in an email.
“We compete vigorously in the marketplace and conduct ethical business, and we are confident in our efforts to maintain market integrity on behalf of our customers and consumers. »
The other companies could not immediately be reached for comment.