Oct 15 (Reuters) - A federal judge in Minnesota on Wednesday narrowed a sprawling antitrust lawsuit accusing major U.S. sugar producers of conspiring to fix prices but allowed the case to move forward against United Sugar and Domino Sugar owner ASR Group.
U.S. District Judge Jerry Blackwell said, opens new tab consumers, commercial buyers and other purchasers had plausibly alleged for now that ASR and United Sugar coordinated through a broker to share sensitive pricing data and raise prices.
Blackwell dismissed claims against other defendants including Michigan Sugar and Louis Dreyfus Company, citing a lack of specific allegations tying those companies to the alleged multiyear scheme.
ASR Group, United Sugar and lawyers for the two companies did not immediately respond to requests for comment, and neither did lead attorneys for the groups of plaintiffs.
Michigan Sugar president and chief executive Neil Juhnke said the company was pleased by the judge's order. Louis Dreyfus declined to comment.
All of the companies had denied any wrongdoing and urged Blackwell to throw out the case.
The lawsuits were first filed in 2024 and consolidated in Minnesota as a part of a multidistrict proceeding.
Sugar purchasers accused the producers of using a “clearinghouse” to exchange pricing, production levels and other non-public data to eliminate competition.
The alleged conduct drove retail sugar prices up 70% between 2019 and 2024, according to the plaintiffs.
In seeking dismissal, the sugar companies said the buyers ignored “obvious, alternative explanations” for rising prices, including the cost of raw sugar, which is the primary input for granulated cane sugar.
Blackwell said the claims against several of the defendants lacked enough facts to sustain the allegations of an illegal agreement.
“Receiving information is not the same as agreeing to fix prices,” Blackwell wrote. “Knowledge of competitors’ pricing does not plausibly infer an agreement.”
The court said the plaintiffs could file an amended lawsuit within 30 days.
