Dean Foods settlement final, dairy farmers to get $24 million

On August 3, 2011, the Vermont District Court approved the Dean Foods Settlement involving the price of Grade A milk produced and sold in the Northeast. The class action antitrust lawsuit brought by a class of northeast dairy farmers against Dean, Dairy Farmers of America (DFA) and Dairy Marketing Services (DMS) was filed in August of 2009. The farmers reached a settlement agreement with Dean Foods Company in December 2010, including $30 million in monetary damages. The final settlement had to be approved by the federal court, which has taken over 7 months.
In the final settlement, the Court awarded all of the Plaintiffs’ costs of $1.5 million but only awarded $4.5 million in fees, out of the $8.5 million requested by the attorneys for the plaintiffs. Thus, the attorneys will get $6 million or 20 percent of the settlement amount, as opposed to the 33 percent requested. The Court denied the requests for incentive awards for the class representatives and an award of accrued interest on the settlement fund. Consequently, approximately $24 million will be provided to eligible dairy farmers in the defined class.
All past and present dairy farmers in Vermont should have received a mailing regarding this settlement and the deadline is approaching for dairy farmers to determine if they will take part in the settlement or not.
‘It is important for all Vermont Dairy Farmers to carefully consider their options regarding this settlement, ‘ stated Deputy Secretary Diane Bothfeld. Dairy farmers’ legal rights are affected whether or not they act. Information, claim forms and a clear description of the settlement is available at www.NEDairySettlement.com.
Farmers wishing to receive a payment from the Settlement you must complete and return a claim form and state the amount of Grade A milk produced and pooled in the Northeast between January 1, 2002 and May 23, 2011. The form is due by August 23, 2011. The settlement forms are very straightforward and most farmers should be able to complete them without outside assistance. 1-888-356-0258 for information.
The Vermont Office of the Attorney General reviewed the settlement and monitored the proceedings, and in a letter to the Court did not object to the settlement.