Price Manipulation: lawsuit against American peanuts Adm
The group paid $ 45 million to close a lawsuit filed by 12,000 farmers
ADM (Archer Daniels Midland Co., one of the largest producers of American peanuts, ingredients and feed, with sales of $ 3.45 billion in 2020) has agreed to pay $ 45 million to settle the price manipulation allegations made in a lawsuit against its Golden Peanut division. With the deal, the company aims to settle a civil suit filed by some 12,000 U.S. peanut growers, who have accused major processors of setting up a cartel to keep the prices paid to growers low. According to the lawsuit, the two largest US peanut processors - Birdsong Peanuts and ADM's Golden Peanut division - jointly manage 80-90% of the country's peanut market, and the rest from Olam International.
According to the allegations ADM, as well as Birdsong and Olam, have jointly overestimated peanut stock totals to make the market look like excess, allowing them to quote low prices. A spokesperson for ADM, quoted by the Wall Street Journal, said the company denies any wrongdoing in the matter and has resolved the lawsuit to avoid spending more time and money.
"ADM has built strong relationships with farmers since the company was founded in 1902 and we continue to make farmers the center of our business", he said. In separate settlement agreements reached late last year, Birdsong and Olam agreed to pay a total of $ 58 million in turn.
EFA News - European Food Agency