Cattlemen Seek to Join Suit Against Kane Beef
A growing list of cattlemen and feedlot operators seek to join a federal lawsuit against Kane Beef Processors, LLC.
According to court filings Friday, nearly two dozen new businesses argue they have claim to join in the suit that alleges Kane Beef owes millions to comply with the Packers and Stockyards Act.
In July, Kane Beef agreed to repay $38 million to livestock sellers after two complaints were filed against the processor for allegedly violating the Packers and Stockyards Act by failing to meet the timeframe for payments. Both complaints allege that as of June 8, 2018, the company was 38-days late on some payments, with a few up to 60 days late.
The Corpus Christi-based beef packer has been paying $500,000 a month to settle the matter, according to a report in the Corpus Christi Caller-Times. The court ordered the company to pay $500,000 a month for six months, and failure to do so would mean the court could appoint a receiver to manage Kane Beef’s financial affairs.
Additionally, Kane Beef had amassed a $2.4 million utilities bill with the city of Corpus Christi. In May, city officials and Kane Beef negotiated a payment plan, and the company is current on payments to resolve that debt. The Corpus Christi Caller-Times also reported Kane Beef owed another $400,000 in unpaid property taxes, of which $331,840 remains unpaid. The company has until Jan. 31 to pay those property taxes in full to remain within the terms of the payment agreement.
Kane Beef employs 600 workers and has a slaughter capacity of 1,700 head per day.
Those seeking to join the lawsuit include: Amigos Beef Cattle Company, LLC, Cal-Tex Feedyard, Inc., Carrizo Feeders, Ltd., Chaparral Feeders, Inc., Charco Cattle Feeders, Dawn Custom Cattle Feeders, Inc., Driskill Feedyard, Inc., Graham Land and Cattle Company, Immel Feedyard, Lipan Cattle Feeders, LLC, Live Oak Feedlot, Inc., Livestock Investors, Ltd. d/b/a Bar G Feedyard, Lubbock Feeders, LLC, Luckey Custom Feedlot, Inc., McDonald Bar 6 Feedlot, Morales Feed Lots, Inc., Rumiells Peters Feedyards, LLC, Santa Fe Feeders, Ltd., Shearrer Feedlot, Inc., Stan- Feedyards, Ltd., and Texana Feeders, Ltd.
