DFA reaches settlement in cheese class action lawsuit

 Resize text         Printer-friendly version of this article Printer-friendly version of this article

Dairy Farmers of America, the nation's largest dairy cooperative, issued the following statement Friday morning:

“Dairy Farmers of America has reached a settlement agreement in a portion of the class action lawsuit regarding DFA’s trading activity on the Chicago Mercantile Exchange in 2004.

“Under the terms of the settlement with the class of direct purchasers of dairy products, filed this week, DFA makes no admission of wrongdoing and will pay $46 million to the plaintiff class.

“Our farmer leadership and management team have worked diligently to put certain old issues behind us and resolve pending litigation. Recently we were able to settle a class action lawsuit in the Southeast United States. Resolution of both of these lawsuits allows us to remove a source of distraction for our leadership and to avoid additional legal fees.

“The payment of the settlement will not affect the Cooperative’s day-to-day operations or its ability to market members’ milk and pay them a competitive price for that milk. Member milk checks and the member equity program will not be impacted.”



Comments (5) Leave a comment 

Name
e-Mail (required)
Location

Comment:

characters left

Ken    
Batavia, NY  |  March, 25, 2013 at 10:36 AM

With all the lawsuits and settlements that DFA has been a part of, there is a question that needs to be asked. Is this a mafia operation or just generally corrupt?

Dick    
NY  |  March, 25, 2013 at 12:32 PM

I believe it said it was a lawsuit from 2004 when Gary Hanamen was running it like the mafia. The end results is it take money out of DFA that should benefit members by way of premiums.

Ken    
Batavia, NY  |  March, 25, 2013 at 12:54 PM

DFA does not have any money for premiums. They need the money for the high priced help at the top and also to spend on their cronies.

skicker    
CNY  |  March, 25, 2013 at 02:42 PM

Premiums to members? LOL! The money would never reach members. Cash reserve, increased pay at the top, etc., etc. one way or another they would find a really good way to use it up.

Steve    
WI  |  March, 25, 2013 at 06:11 PM

Can't imagine DFA with another lawsuit against it! Seems like they just had one a month ago. Do they do anything that is legal? How much in premiums are being taken away from its current patrons to pay for all of these lawsuits. What is amazing to me is that they have any producers who trust them with there milk. They should have to pay for it before it is picked up. They sure do not seem to be looking out for the best interests of there members. Does there board have no control over the management or are they not doing there job?


Ag-Bag MX1012 Commercial Silage Bagger

"The Ag-Bag MX1012 Commercial Silage Bagger is an ideal engine driven mid-size bagger, designed to serve the 150 to 750 ... Read More

View all Products in this segment

View All Buyers Guides