By Mike Scarcella
Nov 18 (Reuters) - Four of the largest potato processors in the United States were accused in a pair of new lawsuits of conspiring to overcharge grocery stores, other commercial buyers and consumers for years.
Lamb Weston , McCain Foods, J.R. Simplot and Cavendish Farms illegally fixed prices for frozen French fries, hash browns, tater tots and other products, Pennsylvania grocery chain Redner’s Markets alleged in a lawsuit filed on Friday in Chicago federal court.
The same companies, as well as marketing group Potatoes USA, were separately sued on Sunday in a proposed consumer class action over similar claims in the same court.
The defendants did not immediately respond to requests for comment on the lawsuits, which allege violations of U.S. antitrust law.
The four companies dominate the $68 billion annual frozen potato products market, the plaintiffs said.
The lawsuits said the companies shared competitively sensitive commercial data with a third-party industry group that provides market snapshots. They contend such data-sharing disincentivized the companies from competing.
According to Redner’s, the price of frozen potato products rose 47% from July 2022 to July 2024. It said input costs “significantly declined” during that period.
The frozen potato manufacturers’ cartel relied on trade industry conferences to unlawfully coordinate on pricing, according to the lawsuits.
The cases seek unspecified monetary damages and a court order ending the alleged price-fixing.
The cases are Redner’s Markets Inc v. Lamb Weston Holdings et al, U.S. District Court, Northern District of Illinois, No. 1:24-cv-11801.
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