As reported in the Dallas Business Journal, a group of dairy farmers has filed a series of lawsuits against Dean Foods and several other companies, including Dairy Farmers of America and National Dairy Holdings, accusing them of illegal price fixing and monopolization. The lawsuit says that, as early as 2001, Dean and the others began implementing a plan to eliminate competition in the production, marketing, and processing of Grade A milk.

Commentary:This represents the latest in a series of headaches for Dean Foods The wild card is whether this civil action will encourage investigations by the DOJ or Tennessee’s Attorney General’s office.

Other recent problems for the company include a consumer backlash/boycott for lobbying for lowered standards for the definition of “organic,” as well as substantial penalties paid to the SEC over allegations that Dean Foods helped publicly-traded Fleming Companies falsely inflate profits by issuing side letters.