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Class Action Defense Cases-Schumacher v. Tyson: South Dakota Federal Court Denies Defense Motion For Summary Judgment In Class Action Lawsuit Under Packers And Stockyards Act

Producers Adequately Alleged Violation of Federal Packers and Stockyards Act (PSA) and Raised Genuine Issues of Material Fact as to Knowledge that Federal Government’s Published Prices for Boxed Beef were Inaccurate

For the few defense attorneys who may benefit from this information, we note that on March 30, 2006, a federal district court denied a defense motion for summary judgment in a class action filed by cattle producers against beef packers under the federal Packers and Stockyards Act (PSA), 7 U.S.C. §§ 181 et seq. The class action alleged that at the time they negotiated for the purchase of cattle, the beef packers knew that the rates for boxed beef published by the federal government were inaccurate. The district court held that the cattle producers had adequately alleged PSA claims and had raised genuine issues of fact in support of those claims. Schumacher v. Tyson Fresh Meats, Inc., 434 F.Supp.2d 748 (D. S.D. 2006).

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