By Mike Scarcella

Feb 3 (Reuters) - JBS JBSS3.SA has agreed to pay $83.5 million to settle antitrust claims that it conspired with other meat-packing companies to curb supply in the U.S. beef market to artificially inflate prices.

Ranchers and other plaintiffs disclosed their proposed settlement with the Brazilian company and its U.S. units on Friday in federal court in Minnesota.

The settlement requires a judge’s approval.

The lawsuit filed in 2019 alleged JBS and other meat producers conspired to fix beef prices, in violation of U.S. antitrust law. JBS denied any wrongdoing in agreeing to settle.

JBS in a statement called the claims "frivolous and without merit" and said settling was in the best interest of the company. The lead plaintiffs’ attorneys declined to comment.

The proposed settlement would resolve claims from two groups: producers that sold cattle to JBS for slaughter between 2015 and 2020, and individuals and others who held certain positions in live cattle futures traded on the Chicago Mercantile Exchange.

The plaintiffs' lawyers estimated thousands of members in each of the two groups.

In their request for court approval, the plaintiffs called the settlement “substantively fair, providing substantial relief for all class members that submit valid claims.”

The terms require JBS to cooperate with the plaintiffs as they pursue related claims against remaining defendants Tyson Foods, Cargill and National Beef.

The three defendants did not immediately respond to requests for comment.

The settlement is the third for JBS, which earlier agreed to pay a combined $78 million to so-called direct purchasers and other buyers to settle their price-fixing claims in the litigation.

The plaintiffs' attorneys said they would seek a legal fee award of up to $27.8 million from the latest settlement fund.

The case is In Re Cattle and Beef Antitrust Litigation, U.S. District Court, District of Minnesota, No. 0:22-md-03031-JRT-JFD.

For plaintiffs: David Scott, Amanda Lawrence and Patrick McGahan of Scott + Scott Attorneys at Law; and Ellen Meriwhether, Jennifer Sprengel and Daniel Herrera of Cafferty Clobes Meriwether & Sprengel

For JBS: Sami Rashid and Mike Bonano of Quinn Emanuel Urquhart & Sullivan

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