Partial Settlement Reached in FCA Action Brought Against Meat Packing Company

The owners of the California-based Hallmark Meat Packing Co. have reportedly
settled claims that they committed fraud under the False Claims Act
(FCA) by supplying ground beef to school lunch programs without meeting
contractual commitments to treat their animals humanely. The Humane
Soc’y of the U.S. v. Hallmark Meat Packing Co., No. 08-00221 (C.D. Cal., partial settlement announced November 16, 2012). The Humane
Society of the United States (HSUS) brought the suit after it discovered and
videotaped animal abuse at the meatpacking facility. Videotape of employees
abusing non-ambulatory animals at the slaughterhouse resulted in the recall
of 143 million pounds of beef in February 2008. The U.S. Department of
Justice (DOJ) intervened in the litigation, which also involves the Westland
Meat Company and other individual defendants.

According to HSUS, Donald Hallmark Sr. and Donald Hallmark Jr. have agreed
to pay $304,000 from their personal assets and will make structured payments
throughout the next five years totaling $312,802. They will also cooperate
with DOJ and produce relevant documents. While a DOJ spokesperson has
reportedly indicated that the remainder of the claims are still pending, HSUS
stated that the Hallmarks agreed to the entry of a final judgment against
their company in the amount of $497 million under FCA’s treble damages
provision. HSUS’s complaint alleges that the companies knowingly kicked,
beat or dragged disabled, or downer, cattle to force them into the kill box for
slaughter. Additional details about the litigation appear in Issue 303 of this
Update. See HSUS News Release, November 16, 2012.