Dean Foods Reaches Agreement With Southeast Dairy Farmers

Dean Foods Co. has reached an agreement to settle litigation brought on behalf of a class of dairy farmers in various Southeastern states. The case had been scheduled for trial beginning in August.
Under the proposed settlement agreement, which is pending approval by the United States District Court for the Eastern District of Tennessee, Dean Foods will pay a total of $140 million over a period of four to five years into a fund that will be available for distribution to dairy farmer class members in a number of Southeastern states.
Dean Foods will make an initial payment of $60 million upon preliminary approval of the agreement by the Court, and will make subsequent payments of $20 million in each of the following four years on the anniversary of the final approval date. "We continue to be confident that we have operated lawfully and fairly at all times in the Southeast," said Gregg Engles, company chairman and chief executive officer. "We believe this settlement is in the best interest of our shareholders, employees, customers and consumers. Settling this case allows us to focus on the business challenges that we face, and to continue to take costs out of our operations while avoiding the expense, uncertainty and distraction of a protracted litigation and the likelihood of a lengthy appeals process.