| FOR IMMEDIATE RELEASE
FRIDAY, AUGUST 13, 1993
TDD (202) 514-1888
WASHINGTON, D.C. -- The Department of Justice today charged H. Meyer Dairy Company of Cincinnati with conspiring to rig bids for the supply of dairy products to public school districts in northern Kentucky and southwestern Ohio.
The Department filed a one-count felony information in Covington, Kentucky, alleging that the conspiracy began as early as 1984 and continued at least through the 1988-1989 school year.
The government said that Meyer and co-conspirators discussed submission of prospective bids for school dairy contracts and designated among themselves which company would be the low bidder on each contract. To carry out the conspiracy, Meyer on occasion allegedly submitted intentionally high, or complementary, bids on contracts in order to assist the other conspirators in obtaining school dairy contracts.
Assistant Attorney General Anne K. Bingaman said the charge is the result of a grand jury investigation in Kentucky into suspected bid rigging in the dairy products industry. The investigation is being conducted by the Antitrust Division's Cleveland field office and is continuing.
Including today's information, the Antitrust Division has filed a total of 98 criminal cases against 52 corporations and 66 individuals in the milk and dairy products industry for bid rigging conspiracies. Cases have been brought in Kentucky, Florida, Georgia, North Carolina, South Carolina, Virginia, Illinois, Texas, Mississippi, Tennessee, Indiana, Oklahoma, Alabama and Michigan.
To date, 45 corporations and 48 individuals have been convicted and a total of approximately $46.3 million in fines imposed. Twenty-six individuals have been sentenced to serve a total of 4,684 days in jail--an average of approximately six months in jail. Civil damages total more than $8 million. Thirty-two grand juries in 21 states continue to investigate the milk industry.
The maximum penalty for a corporation convicted of a Sherman Act antitrust violation occurring prior to November 16, 1990, is a fine not to exceed the greatest of $1 million, twice the pecuniary gain the corporation derived from the crime, or twice the pecuniary loss caused to the victims of the crime.