Why Is McDonald’s Suing Three Iowa, Minnesota Companies?

A lawsuit filed in New York this week pits a fast food giant against four companies, including a trio with strong ties to Iowa and Minnesota.

McDonald's is accusing four of the most prominent beef suppliers in the United States of price gouging, claiming that they are falsely limiting the nation's supply of beef in order to charge buyers higher prices.

The suit was filed October 4 in a Brooklyn federal court.

Food Republic is reporting that three of the companies named in the suit are JBS, Tyson Foods, and Cargill (National Meat Packing is the other). According to the USDA, those companies produce 85% of beef from steer and heifer cows purchased and distributed in the United States.

Cargill is based in Minneapolis and has Minnesota locations in Albert Lea and Big Lake as well as an Iowa processing plant in Mason City.

JBS has Minnesota locations in Cold Spring, Pipestone, and Worthington, and Iowa plants in Council Bluffs, Marshalltown, and Ottumwa.

Tyson Foods has a plant in Council Bluffs.

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According to the suit, McDonald's claims that the meat packaging companies began the price gouging scheme back in 2015 by 'coordinating, manipulating, or agreeing to pay less than competitive prices for the main or primary input in producing beef.'

McDonald's is reportedly seeking a currently undisclosed amount of monetary compensation to account for damages, as well as an end to the alleged beef price conspiracy.