Dean Foods Co (NYSE:DF)’s Updates On Lawsuit

Boston, MA – (NYSEPOST) – 05/08/2014 – A certain Illinois-based dairy-distributor agreed to drop a lawsuit that accuses Dean Foods Co. of breaching a distribution contract & violating an antitrust law, though this dismissal will not be final until this distributor has satisfied the outstanding debts to the Dean subsidiary.  Fresh N’ Pure Distributors has agreed to dismissal of its claims which stated that  it had been denied access improperly to Dean’s fluid-milk products, but this agreement is also subject to Fresh N’ Pure’s satisfaction of the debts to DF & its subsidiary-Dean Foods of Wisconsin. As per the stipulation of the dismissal in Wisconsin’s federal court.

 This distributor presently owes the DF affiliate $844,646, as per the January motion that was filed in the Illinois bankruptcy court. Fresh N’ Pure had filed the suit in 2011, and had claimed that after the Dallas-based Dean had acquired Wisconsin co-operative association’s Foremost Farms USA in the year 2009, it had breached a distribution-contract & strangled competition in the upper-Midwest milk market. This distributor also alleged that though it had been promised that it would be given a right to distribute Dean & Foremost’s fluid-milk products, it was still denied access to the DF products soon after this acquisition.

 This company also claimed that even as Fresh N’ Pure was being denied Dean’s fluid milk products, the latter’s distributors sold the products to potential customers of Fresh N’ Pure’s, with whom it had already negotiated the prices. The suit has further alleged that DF had offered rebates on the company’s milk products and had intentionally undersold to some customers in order to restrict the competition. In Nov 2011, U.S. Magistrate-Judge Aaron E. Goodstein had dismissed antitrust claims that were brought by Fresh N’ Pure, and had ruled that DF’s alleged refusal to do any business with Fresh N’ Pure did not actually violate- Robinson-Patman Act.

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