California Dairies Inc. urged a California federal judge to dismiss dairy farmers’ third amended class action complaint accusing it and affiliate DairyAmerica Inc. of lowballing nonfat dry milk prices, saying that the most recent complaint relies on false representations of a dairy executive’s declaration and fails to include facts showing intent to defraud.
California Dairies, which is one of cooperative DairyAmerica's nine members, told California’s Eastern District that the dairy farmers’ third amended complaint relies on facts from a declaration made by Douglas White, former director of sales of DairyAmerica, that do not exist, saying that White never swore that California Dairies instructed DairyAmerica to misreport to the U.S. Department of Agriculture's National Agricultural Statistical Service.
The farmers have alleged that DairyAmerica made false reports regarding prices and volumes on nonfat dry milk sales to the NASS, claiming that those reports can affect how milk producers are compensated for milk products.
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The case is Carlin et al. v. DairyAmerica Inc. et al., case number 1:09-cv-00430, in the U.S. District Court for the Eastern District of California.