Dairy cooperative did not admit wrongdoing, agreed to pay $50 million.
Earlier this week, Dairy Farmers of America reached a settlement in a class action lawsuit filed in 2009 on behalf of dairy farmers in the Northeast region. In its July 3 DFA Today electronic newsletter, DFA says that under the agreed terms, it did not admit wrongdoing and agreed to pay $50 million, which will be shared between DFA and Dairy Marketing Services (DMS), one of the co-defenders in the suit.
"While we believe the allegations against us were without merit, the cost to continue to defend ourselves has become too great," DFA says. "We have reserves set aside to cover the cost of the settlement, and this settlement will not affect members’ equity, our ability to operate or the services provided to DFA members."