DFA reaches partial settlement on CME case
The nation's largest dairy cooperative, Dairy Farmers of America, announced this week that it has reached a settlement agreement in a portion of a class action lawsuit regarding DFA's trading activity on the Chicago Mercantile Exchange (CME) in 2004.
Under the terms of the settlement with a group of direct purchasers of dairy products, filed this week, DFA makes no admission of wrongdoing and will pay $46 million to the plaintiff class.
The move is one that will help put "certain old issues behind us and resolve pending litigation," the organization said in a statement. DFA recently settled a class action lawsuit in the Southeast United States.
Resolution of that case and the CME litigation "allows us to remove a source of distraction for our leadership and to avoid additional legal fees," the statement said.
The payment of this most recent settlement will "not affect the cooperative's day-to-day operations or its ability to market members' milk and pay them a competitive price for that milk.
Member milk checks and the member equity program will not be impacted," cooperative officials stated in their press release.