Stew Leonard”™s Inc. is seeking class-action status for a lawsuit against the Dairy Farmers of America Inc., claiming the association is attempting to drive up the price of milk by purchasing large quantities of cheese.
Based in Norwalk, Stew Leonard”™s bills itself as the world”™s largest dairy store and numbers among the 20 largest local employers with more than 1,100 workers in Fairfield County.
Stew Leonard”™s accused the Dairy Farmers of America of purchasing inordinate amounts of cheese on the Chicago Mercantile Exchange for the purpose of “cornering the market” for the spot price of cheese, thereby raising the price of milk. The dairy cooperative and two of its executives were fined $12 million last month by the Commodities Futures Trading Commission for market manipulation.
Stew Leonard”™s did not immediately specify an amount it would seek in damages, but said plaintiffs should be entitled to treble damages under the federal Sherman Antitrust Act.
The Dairy Farmers of America, which has 18,000 member farms in 48 states, did not immediately file an answer in court, and a spokeswoman declined comment to Bloomberg News.
