A company in New York has filed a suit against the United Potato Growers of America and 23 other entities, saying they don't qualify for limited antitrust protection accorded cooperatives by the Capper-Volstead Act.
As expected, another lawsuit against the same plaintiffs was filed shortly afterward, this time a class-action suit in California.
In a statement, the Salt Lake City-based United Potato Growers defend the co-op and say the allegations are unfounded.
"At this time, not enough is known as to what the costs and implications, if any, will be for the local United affiliated co-op," co-op leaders wrote in a newsletter to growers.
Read more in The Packer.