Dean Foods Reaches Agreement to Settle Tennessee Farmer Litigation

Dean Foods Company DF today announced it has reached an agreement with the plaintiffs 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 2011. 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.