cub022307
On the homepage
In the newspaper
Out There
Small business
Northstar rolls
Is the beef on the table the beef on the label?
Cub Foods faces a lawsuit claiming that it jacked up the price of its beef with false Black Angus labels.
Print this story
E-mail this story
Save to del.icio.us
Share on Facebook
Share on Digg
Minnesota business by the numbers
See Minnesota's top earning companies, CEOs and non-profits
More from Business
Cub Foods and its parent company, Supervalu Inc., were accused in a lawsuit filed Thursday of fraudulently mislabeling beef and selling it at a higher price.
Michael Olson, of Ham Lake, and John Wylde, of Coon Rapids, allege that for at least six years Cub Foods has systematically mislabeled regular USDA choice beef as Black Angus, which costs more than other beef. The lawsuit, which seeks class-action status, was filed in district court in Anoka County, where the plaintiffs live.
Cub Foods responded in a statement saying, "We absolutely stand behind the integrity of our products. ... If at any time that standard is not met, it will be corrected immediately to ensure our responsibility to our customers is intact."
The lawsuit hinges on stories by two unidentified former meat handlers who had worked at several Cub stores in Minnesota, said Guy Burns, an attorney from Tampa who specializes in class-action lawsuits.
Burns didn't have paperwork showing fraudulent mislabeling, but he said he considered the stories truthful.
He also said he knew of no complaints to the U.S. Department of Agriculture, which certifies beef and regulates labeling. The suit alleges that as much as 50 million pounds of beef falsely labeled as Black Angus is sold each year by Cub. Attorneys said Black Angus costs about $1 more per pound than regular USDA choice beef. The safety of the beef is not in question.
Cub began selling its "Rancher's preferred Black Angus beef" in 2004 as 100 percent USDA choice beef "raised in the heartland."
Supervalu, based in Eden Prairie, is the third-largest supermarket chain in the country. In addition to Cub, it owns Albertson's, Jewel-Osco and Save-A-Lot.
Jackie Crosby • 612-673-7335 • jcrosby@startribune.com
Recent Business stories
Cribsheet: Baking Lessons - February 22, 2007
Cribsheet: Baking Lessons - I have lofty aspirations of being a Martha Stewart/Becky Home-Ecky type. More often than not, I just end up being a Becky Home-Icky. More
Blog: Patent Pending
Meanwhile, in Wisconsin....
As you read this blog entry, angel investors and start-ups are flocking to Madison, Wisconsin for the annual Wisconsin Early Stage Symposium and the Mid West Health Care Venture forum.
Comment on this story | Be the first to comment | Hide reader comments