Judge Rejects $50M Settlement In Dairy Lawsuit

A federal judge in Burlington has rejected a proposed $50 million settlement in a lawsuit by Northeast dairy farmers against the cooperative Dairy Farmers of America to settle antitrust allegations from a 2009 class-action lawsuit.

The lawsuit charged the cooperative, its marketing arm Dairy Marketing Services and Dallas-based Dean Foods with working together to monopolize the market for raw milk in the Northeast.

Dean Foods agreed to a separate $30 million settlement in 2011. The remaining defendants, Dairy Farmers of America and Dairy Marketing Services, agreed to pay $50 million, which would have worked out to an average of $4,000 each for more than 7,000 farmers, including in Vermont.

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