The major milk wholesalers in downstate New York engaged in a horizontal conspiracy to fix the price of milk. Defendants coerced other wholesalers to participate in price fixing. Most retailers (grocery stores) were coerced or induced into selling milk at fixed prices. A motion seeking preliminary approval of proposed settlement agreement was denied on May 25, 1982. On September 6, 1983 a motion for dismissal was granted as against the individual defendants with leave to re-plead where the state failed to specify entitlement to relief against any given individual defendant. A motion for dismissal was denied on September 8, 1983. The parties eventually entered into a settlement for $1,600,000. There was some difficulty determining how that settlement ought to be distributed. The restitution per household was calculated at $1.50. Distribution costs, estimated at $2,500,000 or more, would have been so significant as to reduce the pool of funds by at least half. There was also concern that population changes would result in a misallocation of these already small amounts. The parties proposed printing coupons on milk cartons. The court determined that it would be best to distribute the funds to public, private and parochial schools in the eleven counties covered by the complaint. The schools were required to spend the money nutrition expenses or programs that would otherwise not be funded. Additional cites for this case: 547 F.Supp 306 (S.D.N.Y. May 25, 1982), 1982-83 Trade Cases P 65, 148, Docket No. 81 Civ. 1891, (motion seeking preliminary approval of settlement denied); 698 F.2d 567 (2nd Cir Jan 12, 1983), 1982-83 Trade Cases P 65, 149, No. 467, Docket 82-7484, (order denying preliminary approval of settlement cannot be appealed by the state because it is not a final judgement); 570 F.Supp 1213 (S.D.N.Y. Sept 6, 1983), Docket No. 81 Civ. 1891 (RO), (complaint dismissed as to defendants against whom there were no specific allegations of misconduct);
1983 WL 1869 (S.D.N.Y. Sept 8, 1983), Docket No. 81 Civ. 1891, (Motion for dismissal under parens patriae argument denied); 1983 WL 1869 (S.D.N.Y. June 26, 1985), Docket No. 81 Civ. 1891, (order structuring settlement distribution).