According to a press report, the U.S. Department of Justice (DOJ) plans to oppose the request for $90.8 million in attorney’s fees filed by counsel for African-American farmers who sued the U.S. Department of Agriculture for discrimination in the administration of farm loan programs. Additional information about the fee petition appears in Issue 405 of this Update. While DOJ lawyers have not yet filed a formal opposition to the fee petition, in other court papers they have apparently indicated that “the government does not agree with every point made by plaintiffs in support of final approval of this settlement agreement.” The fee request represents 7.4 percent of the proposed $1.25 billion settlement. Ten individuals reportedly filed an objection to the settlement earlier in August, contending that settling the matter before discovery would be detrimental to plaintiffs who would lose their bargaining leverage with the federal government. See The BLT: The…
Category Archives Department of Justice
The Department of Justice recently took action against seafood producers in Wisconsin and Alabama for products that were either processed in plants lacking Hazard Analysis and Critical Control Point (HACCP) plans or misbranded. In Wisconsin, a U.S. attorney filed a complaint to seize a variety of breaded seafood products in the possession of Soderholm Wholesale Foods, Inc. and Fellerson, Inc. and sold under the “Seaside” label. United States v. “Seaside” Breaded Cod Fillets, No. 11-277 (W.D. Wis., filed April 18, 2011). According to the complaint, these products are adulterated “in that they have been prepared, packed, or held under insanitary conditions whereby they may have been rendered injurious to health.” Investigations in 2010 allegedly revealed that the companies did not have a written HACCP plan and failed to adopt one after warning. Meanwhile, seafood wholesalers Karen Blyth and David Phelps have reportedly been sentenced in an Alabama federal court to 33…
According to the Department of Justice, a Massachusetts-based fish packer has been convicted of several criminal charges for falsely labeling packages of frozen fish fillets. A federal jury in Boston found Stephen Delaney guilty of a felony violation of the Lacey Act for falsely labeling $8,000 worth of frozen pollock, a product of China, as more expensive cod loins, a product of Canada. The jury also convicted Delaney of one misdemeanor violation for misbranding food under the Food, Drug, and Cosmetic Act; he allegedly placed into interstate commerce $203,000 worth of Chinese frozen fish fillets falsely labeled as products of Canada, Holland, Namibia, and the United States. Evidence at trial apparently indicated that he also changed 4 oz. labels on some packages to 5 oz. labels. Delaney will be sentenced on June 8, 2011; he faces up to six years in jail and up to $350,000 in fines. See Department of…
The U.S. Department of Justice (DOJ) has reached a settlement with Dean Foods Co. over antitrust concerns about its acquisition of the Foremost Farms USA Coop. Under the agreement, which will be published in the Federal Register for comment and must undergo court approval, Dean will “divest a significant milk processing plant in Waukesha, Wis., and related assets . . . including the Golden Guernsey brand name.” The agreement also apparently requires Dean to “notify the department before it makes any future acquisition of milk processing plants for which the purchase price is more than $3 million.” According to DOJ, the divestiture will “restore competition in the sale of milk to schools, grocery stores, convenience stores and other retailers in Illinois, Michigan and Wisconsin.” See Department of Justice Press Release, March 29, 2011.
Senator Patrick Leahy (D-Vt.) has requested that Attorney General Eric Holder provide an update on the Justice Department’s criminal investigation into the 2009 Salmonella outbreak involving contaminated peanuts from Peanut Corp. of America (PCA) facilities. As Leahy reminds Holder in his February 22, 2011, letter, the outbreak was linked to the deaths of nine people and purportedly sickened more than 700 others. He also cites his previous request that the department conduct “a full criminal investigation into this matter.” PCA declared bankruptcy in 2009, and neither its former CEO nor other executives have been charged to date. According to Leahy, “Given the PCA investigation, the pistachio recall, and last summer’s salmonella outbreak from eggs, my concerns remain that wrongdoers are disregarding the health and safety of American consumers by choosing to sell contaminated products. I hope that there has been a thorough criminal investigation into PCA’s conduct at the least,…
According to a news source, a district court in the District of Columbia has denied a request seeking an order that the Justice Department submit a proposal for settling claims of loan program discrimination filed by female farmers against the U.S. Department of Agriculture. Instead, the court apparently urged the lawyers representing the litigants to work together to reach an agreement and to report back during a January 14, 2011, status hearing. Unlike recent cases addressing charges that USDA discriminated against African-American (Pigford I and Pigford II) and Native American (Keepseagle v. Vilsack) farmers, Love v. Vilsack reportedly involves putative class claims that have not been certified. Counsel for the women farmers and those representing Hispanic farmers with similar claims (Garcia v. Vilsack) contend that the government’s settlement proposals thus far pale in comparison to the sums agreed to in Pigford ($2.25 billion) and Keepseagle ($680 million). See National Journal Daily, December…
Responding to media reports that workers at the egg facilities linked to a recent nationwide Salmonella outbreak complained about food safety problems, Senator Chuck Grassley (R-Iowa) has written to U.S. Department of Agriculture (USDA) Secretary Tom Vilsack asking whether these complaints were investigated and whether the agency has a process for reporting safety violations. Grassley acknowledges that USDA places only non-food safety personnel at egg farms to grade the eggs. Still, he asks whether “there is an established process for USDA employees to report food safety concerns to the FDA [Food and Drug Administration, which has the responsibility for food safety] when they fall outside of USDA’s jurisdiction?” According to press reports, two former Wright County Egg facility employees said they told USDA employees that they had observed problems such as leaking manure, rodents and dead chickens at the facilities. They also apparently claimed that USDA employees “would just turn…
Hundreds of farmers reportedly attended one in a continuing series of Department of Justice (DOJ) hearings on antitrust issues in agriculture. The focus of the meeting held at the University of Wisconsin-Madison was on the dairy industry. According to U.S. Agriculture Secretary Tom Vilsack, the number of dairy farms has fallen from 111,000 in 2000 to 65,000 today. Farm consolidation and voluntary retirement are reportedly responsible for some of the losses, but most are purportedly due to farmers forced out of business by high costs and the low prices they receive for dairy products. Some of the dairy farmers who spoke during the June 25, 2010, meeting reportedly complained about how prices are set for dairy products by mercantile exchanges; others pointed to the largest dairy companies as the source of reductions in competition. A spokesperson for a cooperatives trade association was quoted as saying, “There are five people who…
The U.S. Department of Agriculture (USDA) and Department of Justice (DOJ) recently held the second workshop in a series dedicated to competition and regulatory issues in agriculture. Held in Normal, Alabama, the forum reportedly focused on the poultry industry and featured the remarks of U.S. Attorney General Eric Holder and USDA Secretary Tom Vilsack, as well as roundtable discussions with farmers, academics and other stakeholders. According to a May 21, 2010, USDA press release, Holder reiterated that both agencies were committed to “protecting competition in those markets.” News sources have also noted Holder’s pledge to “understand why a growing number of American producers and farmers find it increasingly difficult to survive what they’ve done for decades.” A transcript of the proceedings will become available on the DOJ Antitrust Division website at a later date. See The Huntsville Times, May 21, 2010.
The American Soybean Association has reportedly submitted comments expressing concerns about agribusiness concentration to the Department of Justice and the U.S. Department of Agriculture (USDA) in response to their recent initiative on competition and regulatory issues in the agriculture industry. According to ASA President Rob Joslin, “In recent years, we have seen increased consolidation in various agricultural industries. Many farmers have questioned why high levels of concentration have not been more thoroughly reviewed and analyzed by the federal government to determine their impact on competition.” See Southeast Farm Press, January 11, 2010. The agencies announced that they would be holding a number of joint public workshops to explore these issues in a November 2009 news release. Discussions about issues for crop farmers, “including seed technology, vertical integration, market transparency and buyer power” will take place in Ankeny, Iowa, on March 12, 2010; production contracts, concentration and buyer power in the poultry industry…
