JS 44 (Rev. 12/12)
`
`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 1 of 36
`CIVIL COVER SHEET
`The JS 44 civil cover sheet and the information contained herein .neither replace no~ supplement the fihng and service of pleadings or other papers as required by law, except as
`provided by local rules of court. Th ts forn1, approved by the Jud1c1al Conference of the Umted States m September 1974, 1s requtred for the use of the Clerk of Court for the
`purpose of initiating the civil docket sheet.
`•·
`.,
`(SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
`DEFENDANTS
`I. (a) PLAINTIFFS
`EASTERN MUSHROOM MARKETING
`WINN-DIXIE STORES, INC., and
`COOPERATIVE, INC., et al.
`Bl-LO HOLDINGS, LLC
`
`. ,
`
`(b) County of Residence of First Listed Plaintiff
`(EXCEPT JN U.S. PLAINT!
`
`County of Residence of First Listed Defendant
`(JN U.S. PLAINTIFF GAS
`IN LAND CONDEMNATION CASES, U
`THE TRACT OF LAND INVOLVED.
`
`NOTE:
`
`( C) Attorneys (Firm Name. Address. and Telephone Number)
`Krishna B. Narine, Esquire MEREDITH & NARINE
`100 S. Broad Street, Suite 905, Phila., PA 19110 (215) 564-5182
`
`Attorneys (![Known)
`DONALD M. BARNES PORTER WRIGHT MORRIS & ARTHUR LLP
`1900 K STREET NW SUITE 1110 WASHINGTON, DC 20006-1110
`(202) 778-3056
`
`II. BASIS OF JVRISDID(Placean "X"inOneBoxOnly)
`
`0 I U.S. Govemment
`Plaintiff
`
`3
`
`ederal Question
`(U.S. Government Not a Party)
`
`III. CITIZENSHIP OF PRINCIPAL PARTIES (Place an "X" in One Box/or Plaintiff
`(For Diversity Cases Only)
`and One Box for Defendant)
`PTF
`PTF
`DEF
`0 4
`0 4
`0
`I
`
`DEF
`0
`I
`
`Incorporated or Principal Place
`of Business In This State
`
`Citizen of This State
`
`0 2 U.S. Govemment
`Defendant
`
`0 4 Diversity
`(Indicate Citizenship of Parties in Item Ill)
`
`Citizen of Another State
`
`0 2
`
`0
`
`2
`
`Incorporated and Principal Place
`of Business In Another State
`
`0 5
`
`0 5
`
`Citizen or Subject of a
`Forei n Coun
`
`0 3
`
`0
`
`3 Foreign Nation
`
`0 6
`
`0 6
`
`IV. NATURE OF SVlT(Ptacean "X"inOneBoxOntyJ
`
`0 110 Insurance
`0 120Marine
`O 130 Miller Act
`O 140 Negotiable Instrument
`0 150 Recovery of Overpayment
`& Enforcement of Judgment
`O 151 Medicare Act
`O 152 Recovery of Defaulted
`Student Loans
`(Excludes Veterans)
`O 153 Recovery of Overpayment
`of Veteran's Benefits
`O 160 Stockholders' Suits
`0 190 Other Contract
`O 195 Contract Product Liability
`O 196 Franchise
`
`PERSONAL INJURY
`0 310Airplane
`0 315 Airplane Product
`Liability
`0 320 Assault, Libel &
`Slander
`0 330 Federal Employers'
`Liability
`0 340 Marine
`0 345 Marine Product
`Liability
`0 350 Motor Vehicle
`0 355 Motor Vehicle
`Product Liability
`0 360 Other Personal
`
`PERSONAL INJURY
`0 365Personallnjury -
`Product Liability
`0 367 Health Care/
`Pharmaceutical
`Personal lnjlll)'
`Product Liability
`0 368 Asbestos Personal
`Injury Product
`Liability
`PERSONAL PROPERTY 0 710 Fair Labor Standards
`0 370 Other Fraud
`Act
`0 371 Truth in Lending
`0 720 Labor/Management
`0 380 Other Personal
`Relations
`0 740 Railway Labor Act
`Property Damage
`0 385 Property Damage
`0 751 Family and Medical
`Product Liability
`Leave Act
`0 790 Other Labor Litigation
`lliffillii®,:~,...· ,-:::.,,1®.=c:A'.;;ili.,;.];;;l•l!!:;:0;;1';;:1il;;;R;i:ID;;¥;;c;::;'"i=''l"';,::Kc;11t· --~:;;mW:i;m:W:;m;;;;m;;;;n;;;;;;;;;;~o;;!ml;;;;;:;;;;;m;;md 0 791 Employee Retirement
`0 440 Other Civil Rights
`Income Security Act
`0 210 Land Conde1rutation
`0 220 Foreclosure
`0 441 Voting
`0 230 Rent Lease & Ejectment
`0 442 Employment
`0 443 Housing/
`0 240 Torts to Land
`0 245 Tort Product Liability
`Accommodations
`0 290 All Other Real Property
`0 445 Amer. w/Disabilities -
`Employment
`0 446 Amer. w/Disabilities -
`Other
`0 448 Education
`
`0 625 Drug Related Seizure
`ofProperty21 USC881
`0 690 Other
`
`0 422 Appeal 28 USC 158
`0 423Withdrawal
`28 USC 157
`
`375 False Claims Act
`400StateReapportionment
`IO Antitrust
`30 Banks and Banking
`450 Couunerce
`460 Deportation
`0 470 Racketeer Influenced and
`Corrupt Organizations
`0 480 Consumer Credit
`~ 0 490 Cable/Sat TV
`0 850 Securities/Commodities/
`Exchange
`0 890 Other Statutory Actions
`0 891 Agricultural Acts
`0 893 Environmental Matters
`0 895 Freedom oflnformation
`Act
`0 896 Arbitration
`0 899 Administrative Procedure
`Act/Review or Appeal of
`Agency Decision
`0 950 Constitutionality of
`State Statutes
`
`·' ~ ·
`0 861 HIA (1395fl)
`0 862 Black Lung (923)
`0 863 DIWC/DIWW (405(g))
`0 864 SSID Title XVI
`0 865 RSI ( 405(g))
`
`0 870 Taxes (U.S. Plaintiff
`or Defendant)
`0 871 IRS-Third Party
`26 use 7609
`
`0 510 Motions to Vacate
`Sentence
`0 530 General
`0 535 Death Penalty
`Other:
`0 540 Mandamus & Other
`0 550 Civil Rights
`0 555 Prison Condition
`0 560 Civil Detainee -
`Conditions of
`Confinement
`
`. :J;;.IMMIGRA!11I9 .
`%11
`0 462 Naturalization Application
`0 465 Other Immigration
`Actions
`
`RIGIN (Placean "X"inOneBoxOnly)
`riginal
`D 2 Removed from
`roceeding
`State Court
`
`D 3 Remanded from
`Appellate Court
`
`D 6 Multidistrict
`Litigation
`
`D 4 Reinstated or D 5 Transferred from
`Reopened
`Another District
`(specifY)
`Cite the U.S. Civil Statute under which you are filing (Do not cite jurisdictional statutes unless diversity):
`Cla on Act, 15 U.S.C.
`15 a, 18 and 26, and Sherman Act, 15 U.S.C.
`1 and 2
`VI. CAUSE OF ACTION Brief description of cause:
`Price-fixing
`0 CHECK IF THIS IS A CLASS ACTION
`UNDER RULE 23, F.R.Cv.P.
`
`VII. REQUESTED IN
`COMPLAINT:
`VIII. RELATED CASE(S)
`IF ANY
`
`(See instructions):
`
`DEMAND$
`
`DATE
`12/07/2015
`FOR OFFICE USE ONLY
`
`RECEIPT#
`
`AMOUNT
`
`APPL YING IFP
`
`JUDGE
`
`MAG.JUDGE
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 2 of 36
`
`LIST OF DEFENDANTS
`
`lb
`
`EASTERN MUSHROOM MARKETING
`COOPERATIVE, INC.
`649 West South St.
`Kennett Square, PA 19348
`
`ROBERT A. FERANTO, JR t/a
`BELLA MUSHROOM FARMS
`330 Landenberg Rd
`Landenberg, PA 19350
`
`BROWNSTONE MUSHROOM FARMS,
`INC.
`974 Penn Green Road
`Avondale, PA 17340
`
`TO-JO FRESH MUSHROOMS, INC.
`974 Penn Green Rd.
`Avondale, PA 19311
`
`CARDILE MUSHROOMS, INC.
`540 Church Rd.
`Avondale, PA 19311
`
`CARDILE BROS. MUSHROOMS
`PACKAGING
`8790 Gap Newport Rd.
`Avondale, PA 19311
`
`COUNTRY FRESH MUSHROOM CO.
`Highway41 S
`Avondale, PA 19311
`
`FOREST MUSHROOM INC.
`14715 County Road 51
`Saint Joseph, MN 56374
`
`FRANKLIN FARMS, INC.
`931 Rte. 32
`North Franklin, CT 06254
`
`GINO GASP ARI & SONS, INC.
`GASP ARI BROS. INC.
`2103 Georgia Rd.
`Temple, PA 19560
`
`GIORGI MUSHROOM COMP ANY
`GIORGIO FOODS, INC.
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 3 of 36
`
`1813 Hilltop Rd.
`Temple, PA 19560
`
`KAOLIN MUSHROOM FARMS, INC.
`649 West South St.
`Kennett Square, PA 19348
`
`SOUTH MILL MUSHROOM SALES, INC. :
`649 West South St.
`Kennett Square, PA 19348
`
`LRP MUSHROOMS INC
`LRP-M MUSHROOMS LLC
`LEONE PIZZINI AND SON, INC.
`740 Penn Green Rd
`PO Box 366
`Landenberg, PA 19350
`
`MODERN MUSHROOM FARMS, INC.
`1330 Newark Rd.
`Toughkenamon, PA 19374
`
`SHER-ROCKEE MUSHROOM FARM
`170 SherRockee Ln.
`Lincoln University, PA 19352
`
`C & C CARRIAGE MUSHROOM CO.
`1340 Newark Rd.
`Toughkenamon, PA 19374
`
`OAKS HIRE MUSHROOM FARM, INC.
`295 Thompson Rd.
`Kennett Square, PA 19348
`
`PHILLIPS MUSHROOM FARMS, INC.
`124 Old Kennett Rd.
`Kennett Square, PA 19348
`
`HARVEST FRESH FARMS, INC.
`865 Shoemakersville Rd
`PO Box 297
`Shoemakersville, PA 19555
`
`LOUIS M. MARSON, JR., INC.
`459 Greenwood Rd
`Kennett Square, PA 19348
`
`MARIO CUTONE MUSHROOM CO.,
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 4 of 36
`
`INC.
`Rts 1 & 41
`Avondale, PA 19311
`M.D. BASCIANI & SONS, INC.
`8874 Gap Newport Pike
`Avondale, PA 19311
`
`MONTEREY MUSHROOMS, INC.
`260 Westgate Dr.
`Watsonville, CA 95076
`
`MASHA & TOTO, INC. t/a
`M & T MUSHROOMS
`519 Hillendale Rd
`Avondale, PA 19311
`
`W & P MUSHROOM INC.
`4300 Barnsley Chrome Rd
`Oxford, PA 19363
`
`MUSHROOM ALLIANCE, INC.
`c/o CT Corporation System
`520 Pike St.
`Seattle, WA
`
`QUINCY FARMS
`190 Mannie Gunn Rd
`Quincy, FL 32351
`
`CREEKSIDE MUSHROOMS LTD.
`One Moonlight Dr.
`Worthington, PA 16262-9730
`
`KITCHEN PRIDE MUSHROOMS
`County Rd 348
`Gonzales, TX 78629
`
`JM FARMS, INC.
`7001 S. 580 Road
`Miami, OK 74354
`
`UNITED MUSHROOM FARMS
`COOPERATIVE, INC.
`101 New Garden Rd
`Avondale, PA 19311
`
`JOHN PIA
`649 West South St.
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 5 of 36
`
`Kennett Square, PA 19348
`
`MICHAEL PIA
`649 West South St.
`Kennett Square, PA 19348
`
`

`

`~ ~
`. '
`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 6 of 36
`16
`UNITED STATES DISTRICT COURT
`
`.17
`
`FOR THE EASTERN DISTRICT OF PENNSYLVANIA - DESIGNATION FORM to be used by counsel to indicate the category of the case for the purpose of
`assignment to appropriate calendar.
`Address of Plaintiff: 5050 Edgewood Court, Jacksonville, Florida 32254
`,, d Eastern Mushroom Marketing Cooperative 649 W. South St. Kennett Square, PA 19348 (see attached)
`fD
`Add
`e1en a n t : - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -
`rcss o
`Place of Accident, Incident or Transaction: Throughout the United States
`(Use Reverse Side For Additional Space)
`
`Does this civil action involve a nongovernmental corporate party with any parent co oration and any publicly held corporation wni g 10% or more of its stock?
`or ance with Fed.R.Civ.P. 7. l(a
`sOC NoD
`(Attach two copies of the Disclosure Stateme
`
`NoD
`
`CaseN
`
`ll!i.N;j.Ju:!2.l~:ti.~!!2!;2.l!!.Jln.i:ai;l;i;:i;.1011.11M.MOe~rtT"pierrniclliing or within one year previously terminated action in this court?
`YesD
`NoCX
`2. Does this case involve the same issue of fact or grow out of the same transaction as a prior suit pending or within one year previously terminated
`action in this court?
`
`YesiX NoD
`3. Dues this case involve the validity or infringement oi' a patent already in suit or any earlier numbered case pending or within one year previously
`YesD
`NoM
`terminated action in this court?
`
`4. is this case a second or successive habeas corpus, social security appeal, or prose civil rights case filed by the same individual?
`
`CIVIL: (Place t/ in ONE CATEGORY ONLY)
`A Federal Question Cases:
`I. o Indemnity Contract, Marine Contract, and All Other Contracts
`
`2. D FELA
`
`3. Sn.es Act-Personal Injury
`4.
`ti trust
`
`5.
`atent
`6. o Labor-Management Relations
`7. D Civil Rights
`8. o Habeas Corpus
`9. o Securities Act(s) Cases
`10. o Social Security Review Cases
`11. o All other Federal Question Cases
`(Please s p e c i f y ) - - - - - - - - - - - - - - - - - -
`
`YesD
`
`NoM
`
`B. Diversity Jurisdiction Cases:
`I. D Insurance Contract and Other Contracts
`
`2. D Airplane Personal Injury
`3. D Assault, Defamation
`4. D Marine Personal Injury
`5. D Motor Vehicle Personal Injury
`6. D Other Personal Injury (Please specify)
`
`7. D Products Liability
`
`8. D Products Liability - Asbestos
`9. D All other Diversity Cases
`
`(Please specify)
`
`ARBITRATION CERTIFICATION
`(Check Appropriate Category)
`n~~'-""t=n""a:::...:N....:..:::a"'r""in=e ___________ __, counsel of record do hereby certify:
`uant to Local Civil Rule 53.2, Section 3(c)(2), that to the best of my knowledge and belief, the damages recoverable in this civil action case exceed the sum of
`.00 exclusive of interest and costs;
`iX elief other than monetary damages is sought.
`
`~ /
`
`DA E: December 7, 2015
`
`LL
`
`52238 (PA)
`Attorney I.D.#
`Attorney-£-
`/
`NOTE: A trial de novo will be a trial by jury only ifthere has been compliance with F.R.C.P. 38.
`
`= ::__il----
`
`I certify thot, to my lrnowledge, the within co~e b not rtloted to ony ca~e now pending or within one yeor previou~ly terminoted oction in thi§ court
`except as noted above.
`
`DEC - 7 2015
`
`CIV. 609 (5/2012)
`
`Attorney-at-Law
`
`Attorney I.D.#
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 7 of 36
`
`IN THE UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF PENNSYLVANIA
`
`CASE MANAGEMENT TRACK DESIGNATION FORM
`
`CIVIL ACTION
`
`WINN-DIXIE STORES, INC., and
`BI-LO HOLDINGS, LLC,
`v.
`EASTERN MUSHROOM MARKETING
`COOPERATIVE, INC., et al.
`In accordance with the Civil Justice Expense and Delay Reduction Plan of this court, counsel for
`plaintiff shall complete a Case Management Track Designation Form in all civil cases at the time of
`filing the complaint and serve a copy on all defendants. (See § 1 :03 of the plan set forth on the reverse
`side of this form.) In the event that a defendant does not agree with the plaintiff regarding said
`designation, that defendant shall, with its first appearance, submit to the clerk of court and serve on
`the plaintiff and all other parties, a Case Management Track Designation Form specifying the track
`to which that defendant believes the case should be assigned.
`
`NO.
`
`SELECT ONE OF THE FOLLOWING CASE MANAGEMENT TRACKS:
`
`(a) Habeas Corpus - Cases brought under 28 U.S.C. § 2241 through§ 2255.
`
`(b) Social Security - Cases requesting review of a decision of the Secretary of Health
`and Human Services denying plaintiff Social Security Benefits.
`
`(c) Arbitration - Cases required to be designated for arbitration under Local Civil Rule 53.2.
`
`( d) Asbestos - Cases involving claims for personal injury or property damage from
`exposure to asbestos.
`
`(e) Special Management- Cases that do not fall into tracks (a) through (d) that are
`commonly referred to as complex and that need special or intense management by
`the court. (See reverse side of this form for a detailed explanation of special
`management cases.)
`
`(f) Standard Management- Cases that do not fall into any one of the other tracks.
`
`( )
`
`( )
`
`( )
`
`( )
`
`December 7, 2015
`Date
`
`215-564-5182
`
`Telephone
`
`(Civ. 660) 10/02
`
`Krishna Narine
`Attorney-at-law
`
`267-687-1628
`
`Plaintiffs
`Attorney for
`
`knarine@m-npartners.com
`
`FAX Number
`
`E-Mail Address
`
`DEC - 7 2015
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 8 of 36
`
`UNITED STATES DISTRICT COURT
`FOR THE EASTERN DISTRICT OF PENNSYLVANIA
`
`Case No. - - - -
`
`COMPLAINT
`
`WINN-DIXIE STORES, INC., and
`BI-LO HOLDINGS, LLC,
`
`Plaintiffs,
`v.
`
`EASTERN MUSHROOM MARKETING
`COOPERATIVE, INC.,
`ROBERT A. FERANTO, JR t/a
`BELLA MUSHROOM FARMS,
`BROWNSTONE MUSHROOM FARMS,
`INC.,
`TO-JO FRESH MUSHROOMS, INC.,
`CARDILE MUSHROOMS, INC.,
`CARDILE BROS. MUSHROOMS
`PACKAGING,
`COUNTRY FRESH MUSHROOM CO.,
`FOREST MUSHROOM INC.,
`FRANKLIN FARMS, INC.,
`GINO GASP ARI & SONS, INC.,
`GASP ARI BROS. INC.,
`GIORGI MUSHROOM COMPANY,
`GIORGIO FOODS, INC.,
`KAOLIN MUSHROOM FARMS, INC.,
`SOUTH MILL MUSHROOM SALES, INC.,
`LRP MUSHROOMS INC.,
`LRP-M MUSHROOMS LLC,
`LEONE PIZZINI AND SON, INC.,
`MODERN MUSHROOM FARMS, INC.,
`SHER-ROCKEE MUSHROOM FARM,
`C & C CARRIAGE MUSHROOM CO.,
`OAKSHIRE MUSHROOM FARM, INC.,
`PHILLIPS MUSHROOM FARMS, INC.,
`HARVEST FRESH FARMS, INC.,
`LOUIS M. MARSON, JR., INC.,
`MARIO CUTONE MUSHROOM CO.,
`INC.,
`M.D. BASCIANI & SONS, INC.,
`MONTEREY MUSHROOMS, INC.,
`MASHA & TOTO, INC. t/a
`M & T MUSHROOMS,
`W & P MUSHROOM INC.,
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 9 of 36
`
`MUSHROOM ALLIANCE, INC.,
`QUINCY FARMS,
`CREEKSIDE MUSHROOMS LTD.,
`KITCHEN PRIDE MUSHROOMS,
`JM FARMS, INC.,
`UNITED MUSHROOM FARMS
`COOPERATIVE, INC.,
`JOHN PIA, MICHAEL PIA,
`And JOHN DOES 1-100,
`
`Defendants.
`
`COMPLAINT
`
`Plaintiffs Winn-Dixie Stores, Inc. and Bi-Lo Holdings LLC ("Plaintiffs") bring this
`
`action, based the December 2004 antitrust complaint filed by the United States Department of
`
`Justice, the Department of Justice's Competitive Impact Statement, and the Final Judgment
`
`regarding the Justice Department's allegations, to which the Eastern Mushroom Marketing
`
`Cooperative, Inc. ("EMMC") consented.
`
`I.
`
`NATURE OF THE ACTION
`
`1.
`
`Plaintiffs, direct purchasers of mushrooms, bring this antitrust complaint to
`
`recover damages related to the payment of artificially-inflated prices for the mushrooms they
`
`purchased during the Conspiracy Period due to the illegal price-fixing scheme and conspiracy by
`
`EMMC and its members, with the participation of various nonmember third-parties.
`
`2.
`
`Each year American consumers spend over $800 million on mushrooms. The
`
`vast majority are fresh Agaricus mushrooms, the common table variety. During the Conspiracy
`
`Period, EMMC members controlled over 60 percent of all Agaricus mushrooms grown in the
`
`United States and approximately 90 percent of all Agaricus mushrooms grown in the eastern
`
`United States.
`
`2
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 10 of 36
`
`3.
`
`Starting in January 2001, various individuals and entities formed the EMMC
`
`solely as a front and pretext for a naked price-fixing and anticompetitive supply control scheme.
`
`The actions of EMMC, its members, and co-conspirators inflated the average prices for Agaricus
`
`mushrooms by at least 8 percent around the country.
`
`4.
`
`EMMC members formed EMMC as a front in order to engage in naked price-
`
`fixing, collectively fixed artificially-inflated prices at which its members would sell their
`
`products and conspired with nonmember third-parties to increase prices and restrict supply, and
`
`implemented a supply control scheme in support thereof. In addition, they concealed the
`
`membership and activities ofEMMC, collectively interfered with any non-EMMC growers who
`
`sought to sell at prices that were below the artificially-inflated prices set by EMMC and used
`
`collective acts to pressure independent growers to join EMMC and Defendants' anticompetitive
`
`scheme.
`
`5.
`
`The conspiracy among EMMC members and nonmember third-parties to fix
`
`prices, and to restrict competition from non-EMMC farmers, was a per se illegal restraint of
`
`trade in violation of Sections 1 and 2 of the Sherman Act, as well as Section 7 of the Clayton
`
`Act. Created simply as a pretext and front for naked price-fixing, EMMC did not engage in
`
`collective processing, preparing for market, handling, or marketing the products of its members.
`
`Rather, its primary function was to set the prices at which its members individually sold their
`
`products. EMMC's actions provided no market efficiencies or other legitimate business value to
`
`its members or consumers.
`
`6.
`
`As part of this scheme, beginning in May 2001, EMMC, its members, and
`
`nonmember third-parties collectively undertook a "Supply Control" campaign to impede and
`
`forestall competition from independent, non-EMMC farmers. EMMC and its members
`
`3
`
`

`

`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 11 of 36
`
`implemented their campaign by entering into agreements to eliminate a significant amount of the
`
`supply from competing mushroom growers. Starting in May 2001, EMMC, acting as an agent of
`
`its members, purchased four mushroom farms with an annual combined growing capacity of
`
`approximately 29 million pounds, and then sold the four properties to nonmember purchasers at
`
`a combined total loss of over $1.2 million. The non-member purchasers agreed with EMMC to
`
`place permanent deed restrictions on the properties. The deed restrictions prohibited the conduct
`
`of any business related to the growing of mushrooms. For example, one deed restriction read:
`
`This property shall never be used for the cultivation, growing, marketing,
`sale or distribution of fresh mushrooms, canned and/or processed
`mushrooms or related endeavors.
`
`7.
`
`Similarly, in February and August 2002, EMMC, acting as an agent of its
`
`members, entered into lease options at a cost of over $1 million, on two additional mushroom
`
`farms with a combined annual growing capacity of approximately 14 million pounds. Under the
`
`lease options, nonmember third-parties agreed that EMMC could file deed restrictions on the two
`
`farms prohibiting any business related to growing mushrooms for a period of 10 years. Even
`
`though it never entered into leases on these farms, EMMC did file the deed restrictions. No
`
`mushrooms have been grown on the properties EMMC bought or had under lease option since
`
`the deed restrictions were imposed by EMMC. EMMC and its members also bought one or
`
`more mushroom farms in Texas to remove the mushroom supply of those farms from the market.
`
`8.
`
`By imposing deed restrictions on the properties described above, EMMC and its
`
`members were able to substantially reduce the amount ofland available for mushroom
`
`production. EMMC touted the success of the Supply Control campaign to its membership,
`
`claiming that it had "[a]nnually taken over 50 million pounds out of production from facilities
`
`which could have easily been purchased and remained in production." By reducing the amount
`
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 12 of 36
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`of the land and facilities available to produce mushrooms in the United States, EMMC and its
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`members were able to maintain artificial price increases for mushrooms of at least 8%.
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`II.
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`JURISDICTION AND VENUE
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`9.
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`Plaintiffs bring this action pursuant to Sections 4 and 16 of the Clayton Act, 15
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`U.S.C. §§ 15(a) and 26, to recover treble damages, equitable relief, costs of suit and reasonable
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`attorneys' fees for the Defendants' violations of Sections 1and2 of the Sherman Act, 15 U.S.C.
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`§§ 1 and 2 and Section 7 of the Clayton Act, 15 U.S.C. § 18. Subject matter jurisdiction is
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`proper pursuant to Section 4(a) of the Clayton Act, 15 U.S.C. § 15(a), and 28 U.S.C. §§ 1331,
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`1337, and 1345.
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`10.
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`The Defendants are involved in the production, processing, and/or sale of fresh
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`market mushrooms in interstate commerce. The Defendants' activities in the production,
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`processing, and/or sale of mushrooms substantially affect interstate commerce. The Defendants
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`grow, process, and/or sell mushrooms in both the Eastern and Western parts of the United States
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`and ship mushrooms between states.
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`11.
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`Venue is proper in this judicial district pursuant to Section 12 of the Clayton Act,
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`15 U.S.C. § 22, and 28 U.S.C. § 1391 (b) and (c) because during the Conspiracy Period many of
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`the Defendants resided, transacted business, were found, or had agents in this district, and
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`because a substantial part of the events giving rise to Plaintiffs' claims occurred in this District,
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`and a substantial portion of the affected interstate trade and commerce described below has been
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`carried out in this district.
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`III.
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`THE PARTIES
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`12.
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`Plaintiff Winn-Dixie Stores, Inc., is a corporation organized under the laws of the
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`State of Florida. Its principal place of business is 5050 Edgewood Court, Jacksonville, Florida
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 13 of 36
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`32254. During the Conspiracy Period defined below, Plaintiff purchased Agaricus mushrooms
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`directly from one or more Defendants.
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`13.
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`Bi-Lo Holdings LLC is a limited liability company organized under the laws of
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`the State of Delaware. Its principal place of business is 5050 Edgewood Court, Jacksonville,
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`Florida 32254. During the Conspiracy Period defined below, Plaintiff purchased Agaricus
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`mushrooms directly from one or more Defendants.X
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`14.
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`Defendant Eastern Mushroom Marketing Cooperative began operations in
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`January 2001, and purports to be the largest mushroom cooperative in the United States. EMMC
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`is incorporated in the Commonwealth of Pennsylvania and is headquartered in Kennett Square,
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`Pennsylvania. EMMC is made up of entities that grow, buy, package, and/or ship mushrooms to
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`retail and food service outlets across the United States. EMMC concealed the identity of its
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`members by refusing to publish or make publicly available a list of its members.
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`15.
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`EMMC was not formed to process, prepare for market, handle, or market the
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`mushrooms of its members. Rather, EMMC was formed solely as a pretext for naked price(cid:173)
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`fixing by its members. EMMC set the minimum prices at which its members and nonmembers
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`sold their mushrooms to customers in various geographic regions throughout the United States.
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`At least two members of EMMC did not grow any mushrooms. Furthermore, several members
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`ofEMMC were large, vertically-integrated agri-businesses that have extensive processing,
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`distribution and sales operations. During the 2001-2002 growing season, EMMC had
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`approximately 19 members with control of more than 500 million pounds of mushrooms valued
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`in excess of $425 million. During the Conspiracy Period, EMMC members controlled over 60
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`percent of all Agaricus mushrooms grown in the United States and approximately 90 percent of
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`all Agaricus mushrooms grown in the eastern United States.
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 14 of 36
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`16.
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`Defendant Robert A. Ferranto, Jr. is an individual trading as Bella Mushroom
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`Farms ("Bella Mushroom"). The principal office of Bella Mushroom is located in Landenberg,
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`Pennsylvania. Bella Mushroom was an EMMC member during the Conspiracy Period and
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`participated in the improper conduct alleged herein.
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`17.
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`Defendant Brownstone Mushroom Farms ("Brownstone") has its principal office
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`in Avondale, Pennsylvania. Brownstone was an EMMC member during the Conspiracy Period
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`and participated in the improper conduct alleged herein.
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`18.
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`Defendant To-Jo Mushrooms, Inc. ("To-Jo") is related to and controlled by
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`Brownstone. To-Jo processes, packs, and ships mushrooms on behalf of Brownstone. To-Jo has
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`a large fleet of refrigerator trucks that deliver mushrooms directly to retail outlets and consumers
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`throughout New England. Upon information and belief, To-Jo was not an EMMC member but
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`participated in the improper conduct alleged herein.
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`19.
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`Defendant Cardile Mushrooms, Inc. has its principal offices in Avondale,
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`Pennsylvania. Cardile Mushrooms, Inc. was an EMMC member during the Conspiracy Period.
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`Defendant Cardile Brothers Mushroom Packaging, Inc. does not grow mushrooms and is not a
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`member ofEMMC. It is a packager, seller, and distributor with its principal offices in Avondale,
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`Pennsylvania. Both Cardile Mushrooms, Inc. and Cardile Brothers Mushroom Packaging, Inc.
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`are owned and operated by Michael P. Cardile Sr. and Charles Cardile. Both entities
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`participated in the improper conduct alleged herein.
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`20.
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`Defendant Country Fresh Mushroom Co. ("Country Fresh") is a corporation
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`organized and existing under the laws of the Commonwealth of Pennsylvania with its principal
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`office in Avondale, Pennsylvania. Country Fresh is a packing and distribution company owned
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`in its entirety by its directors and officers, Edward A. Leo, Mickey Brosius, and Peter Alonzo.
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 15 of 36
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`Country Fresh does not grow mushrooms. Nevertheless, Country Fresh was an EMMC member
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`during the Conspiracy Period and participated in the improper conduct alleged herein.
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`21.
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`Defendant Forest Mushroom Inc. ("Forest") is a vertically-integrated mushroom
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`producer with its principal offices in Saint Joseph, Minnesota. Forest engages in the research,
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`cultivation, and distribution of mushrooms, has its own packaging facility, and delivers its
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`mushrooms directly to consumers by refrigerator truck. Forest was an EMMC member during
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`the Conspiracy Period and participated in the improper conduct alleged herein.
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`22.
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`Defendant Franklin Farms, Inc. ("Franklin") is a vertically-integrated mushroom
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`producer with its principal offices in North Franklin, Connecticut, has over 500 employees, and
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`is the nation's largest grower and harvester of certified organic mushrooms, and one of the
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`largest agricultural businesses in New England. It processes and distributes its products
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`throughout the eastern United States. Franklin was an EMMC member during the Conspiracy
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`Period and participated in the improper conduct alleged herein.
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`23.
`
`Defendants Gino Gaspari & Sons, Inc. and Gaspari Bros. Inc. are located in
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`Temple, Pennsylvania. Gaspari Bros. Inc. does not grow mushrooms. One or both entities was
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`an EMMC member during the Conspiracy Period. On information and belief, both entities
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`participated in the improper conduct alleged herein.
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`24.
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`Defendant Giorgi Mushroom Company is located in Temple, Pennsylvania.
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`Giorgi Mushroom Company was an EMMC member during the Conspiracy Period. The
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`company's website advertises that it is "a fully integrated grower, processor, and distributor of
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`the finest fresh, frozen, canned, jarred, and value-added mushroom products." Defendant
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`Giorgio Foods, Inc. is also located in Temple, Pennsylvania and does not grow mushrooms,
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`operating instead as a cannery and supplier of frozen foods. Giorgio Foods, Inc. is not a member
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 16 of 36
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`ofEMMC. On information and belief, both Giorgi Mushroom Company and Giorgio Foods, Inc.
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`participated in the improper conduct alleged herein.
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`25.
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`Defendant Kaolin Mushroom Farms, Inc. ("Kaolin") is a vertically-integrated
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`mushroom producer organized and existing under the laws of the Commonwealth of
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`Pennsylvania whose principal office is located in Kennett Square, Pennsylvania. Kaolin was an
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`EMMC member during the Conspiracy Period and operates one of the largest mushroom farms
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`in Pennsylvania, claiming to employ over 400 employees. During the Conspiracy Period, Kaolin
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`sold mushrooms to retail, wholesale, food service, and commercial processors, under the South
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`Mill label. Kaolin participated in the improper conduct alleged herein.
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`26.
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`Defendant South Mill Mushroom Sales, Inc. ("South Mill") is located in Kennett
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`Square, Pennsylvania, and is related through common ownership to Kaolin. South Mill is a
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`"vertically integrated company" engaged throughout the production, transportation, marketing,
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`and distribution process. South Mill has satellite offices and distribution centers in Louisiana,
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`Texas, and Georgia. South Mill claims that "[a]s a result of vertical integration we maintain total
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`control over supply and quality of our product." On information and belief, South Mill does not
`
`grow mushrooms and is not an EMMC member but participated in the improper conduct alleged
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`herein.
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`27.
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`Leone Pizzini and Son, Inc. ("Leone Pizzini") is located in Landenberg,
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`Pennsylvania. On information and belief it is entirely owned by its officers, Leone Pizzini Sr.
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`and Linda Pizzini-Johnson. Leone Pizzini is a wholesaler of fruit and vegetables and is not a
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`grower of mushrooms. Nevertheless, Leone Pizzini was an EMMC member during the
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`Conspiracy Period and participated in the improper conduct alleged herein.
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 17 of 36
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`28.
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`Defendants LRP Mushrooms Inc. and LRP-M Mushrooms LLC are located in
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`Landenberg, Pennsylvania. One or both entities was an EMMC member during the Conspiracy
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`Period. On information and belief, both entities participated in the improper conduct alleged
`
`herein.
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`29.
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`Defendant Modem Mushroom Farms, Inc. ("Modem") is a vertically-integrated
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`mushroom producer with principal offices in Toughkenamon, Pennsylvania. In addition to
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`growing and processing mushrooms, Modem manufactures canned vegetables, fruits, and jellies.
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`Modem sells its products to food brokers, pizza chains, and supermarkets throughout the eastern
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`half of the United States. Modem was an EMMC member during the Conspiracy Period and
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`participated in the improper conduct alleged herein. Modem sold Agaricus mushrooms under
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`the Modem Mushroom Farms label.
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`30.
`
`Defendant Sher-Rockee Mushroom Farm is located in Lincoln University,
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`Pennsylvania, was not a member ofEMMC during the Conspiracy Period, but is related through
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`common ownership to Modem. On information and belief, it participated in the improper
`
`conduct alleged herein.
`
`31.
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`Defendant C & C Carriage Mushroom Co. ("C & C") is located in
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`Toughkenamon, Pennsylvania, was not a member ofEMMC during the Conspiracy Period, but is
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`related through common ownership to Modem. C & C operates as a mushroom packager and
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`broker. On information and belief, it participated with Modem in the improper conduct alleged
`
`herein.
`
`32.
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`Defendant Oakshire Mushroom Farm, Inc. ("Oakshire") is a vertically-integrated
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`mushroom producer located in Kennett Square, Pennsylvania. Oakshire is a nationwide marketer
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`and distributor, operating growing, packing, cooling, office, and warehouse facilities. Oakshire
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`Case 5:15-cv-06480-BMS Document 1 Filed 12/07/15 Page 18 of 36
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`was an EMMC member during the Conspiracy Period and participated in the improper conduct
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`alleged herein.
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`33.
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`Defendant Phillips Mushroom Farms, Inc. ("Phillips") is a vertically-integrated
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`mushroom producer with its principal offices located in Kennett Squar