McDonald's Corporation has filed a lawsuit against nine packers that supplied beef for menu items. The plaintiff alleges that the suppliers illegally colluded to maintain high prices by manipulating levels of slaughter. The company stated in its complaint that collusion commenced in 2015. Defendants will include Cargill Inc., JBS SA, National Beef, and Tyson Foods as the main suppliers.
McDonald’s Corporation alleges violation of Section 1 of the Sherman Antitrust Act by holding prices at a higher level through collusion through sharing production and cost data at industry events and trade shows.
In addition to substantial direct and punitive damages, McDonald’s is also requesting an injunction to enjoin the suppliers from continuing with anticompetitive activities.
In retrospect this lawsuit that may lack merit depending on evidence appears to be a case of the dog biting the hand that feeds it!