Tyson Foods and Cargill have agreed to pay a combined $87.5 million to settle claims that they conspired to raise the price of beef sold to U.S. consumers. The proposed settlements, filed October 6 in federal court in Minnesota, mark the first consumer payouts in the beef price-fixing litigation that began in 2019 and still need court approval before payments can begin.

Under the agreements, Tyson will pay $55 million and Cargill will pay $32.5 million to compensate consumers who indirectly purchased beef products from major retailers such as Walmart, Costco, and Sam’s Club between August 2014 and December 2019. Both companies have denied wrongdoing but agreed to cooperate with plaintiffs as the case continues against the remaining defendants, JBS USA and National Beef Packing.

The class-action lawsuit claims that the four largest beef companies in the country worked together to limit the supply of cattle and share confidential market information, allowing them to drive up the cost of beef nationwide. Together, the companies control about 80 percent of the U.S. beef market. Plaintiffs say that by cutting production and coordinating prices, the companies forced consumers to pay higher prices for commonly purchased cuts of beef, including chuck, loin, and rib.

Lawyers for the consumers estimate that about 36 million people in 26 states and the District of Columbia were affected. An expert economist for the plaintiffs calculated total damages at roughly $1.9 billion, representing years of inflated prices on everyday beef purchases.

According to court filings, the settlements follow more than six years of litigation that involved millions of pages of company records, dozens of depositions, and extensive economic analysis conducted by experts. Attorneys for the consumer class said the evidence gathered through discovery helped establish how alleged pricing practices affected the market and contributed to the settlement discussions now before the court.

In addition to financial payments, Tyson and Cargill agreed to assist in the ongoing case against JBS and National Beef. Their cooperation includes providing access to witnesses and confirming the authenticity of documents and data previously produced during discovery. Plaintiffs’ counsel said this assistance is expected to strengthen the remaining claims.

If approved, the settlements will apply to consumers in 26 states and the District of Columbia that allow claims by indirect purchasers, meaning individuals who bought beef from grocery stores rather than directly from producers. Eligible consumers include anyone who purchased fresh or frozen beef from chuck, loin, rib, or round cuts for personal use during the covered period. Premium or specialty beef products such as organic, grass-fed, or Wagyu are excluded.

The settlement notice and claims process will be managed by Epiq Class Action and Claims Solutions. The company will notify more than 35 million potential class members by email and digital advertising, which is expected to reach about 70 percent of eligible consumers.

Attorneys for the consumer class plan to ask the court to approve up to one-third of the total settlement, or about $29 million, in legal fees to cover litigation costs and expert expenses. The court will review that request as part of the final approval process.

This case is one of several major antitrust lawsuits targeting U.S. meat processors for alleged anticompetitive practices. Earlier this year, JBS paid $83.5 million to settle similar claims brought by ranchers, and Tyson agreed to pay $85 million to resolve separate allegations involving pork prices.