Class action lawsuit filed against United Potato Growers of America, Idaho Potato growers

Idaho Potato growers

June 25, 2010

Source

An antitrust lawsuit contending Idaho potato growers and others conspired to raise potato prices in the United States by controlling supply has been filed in federal court in Pocatello.

The action, filed last week on behalf of a New York produce wholesaler, asks the court to rule it a class-action lawsuit and award plaintiffs triple their damages, though no dollar figure was specified.

"Classic cartel behavior"is how the lawsuit describes the defendants' actions: "Each defendant knew that it could not fix prices by itself and the supply could only be restrained by collective action."

Among the 24 defendants are the United Potato Growers of America and the United Potato Growers of Idaho.

Barb Shelley, spokeswoman for the United Potato Growers of America, said the cooperatives are made up of farmers who are not breaking the law because of the Capper-Volstead Act of 1922, which exempts agricultural cooperatives from antitrust regulations under some circumstances.

"We view (the complaint) as an attack on our potato farmers who work every day to grow potatoes and to provide the country with an adequate supply of potatoes at a fair price,"Shelley told the Idaho Statesman.

Read the complaint (80 pages pdf!)

The Defendants are: Wada Van Orden LLC, Blackfoot;Wada Farms Marketing Group, Pingree;Wada Farms Potatoes, Inc., Blackfoot;Wada Farms, Inc., Blackfoot, United II Potato Growers of Idaho, Inc., Idaho Falls;United Potato Growers of Idaho, Inc., Pingree;United Potato Growers of America, Inc., Idaho Falls;RD Offutt Co., Fargo, N.D.;Rigby Produce, Inc., Rigby;Snake River Plains Potatoes, Inc., Ucon;Lance Funk Farms, American Falls;Raybould Brothers Farms LLC, Rexburg;Potandon Produce LLC, Boise;Pleasant Valley Potato, Inc., Aberdeen;Idahoan Foods, LLC, Boise;General Mills, Inc., Boise;Dole Foods Company, Inc., Los Angeles, Calif.;Driscoll Potatoes, Inc., American Falls;Dole Fresh Vegetables, Inc., Los Angeles;Cornelison Farms, Inc., Rexburg;Blaine Larsen Farms, Inc., Hamer;Cranney Farms, Oakley;Albert Wada, Pinegree;Bayer CropScience LLC, Raleigh, N.C.