The firm has been accused of showing abnormal price movements in an almost decade-long scheme in order to illegally increase profits.
In response to accusations, Hormel Foods has dismissed the claims and will use law firm Faegre Baker Daniels to defend its name.
“Hormel Foods is a 127 year old global branded food company with a reputation as one of the most respected companies in the food industry,” a Hormel Foods statement said. “We are confident that any allegations such as these are completely without merit. We intend to vigorously defend this lawsuit.”
The case, which is being handled by law firm Hagens Berman, was filed on June 28 in the US District Court for the District of Minnesota stating that price fixing schemes had been carried out by the some of the biggest names in the meat industry who control approximately 80% of the market.
Attorneys said Tyson Foods, Hormel Foods and other major meat companies had been defrauding consumers in all states since 2009 by systematically controlling their output.
The lawsuit continued that the accused meat businesses entered into a “conspiracy” to fix, raise, maintain and stabilise the price of pork.
“Hardworking families across the nation strive to put food on the table, but little do they know, the game is rigged from the beginning: the largest food companies are secretly ensuring their dollar doesn’t go as far at the supermarket as it should,” said Steve Berman, managing partner of Hagens Berman.
“We’re seeking to hold Tyson, Hormel and others accountable for this nearly decade-long scheme to hog their share of profits.”
Tyson Foods is yet to release a statement following its accusation.