Dairy Co-Op Reaches Deal Ending Bid to Unwind Dean Foods Rescue

Dairy Farmers of America Inc., the top U.S. milk producer, settled a lawsuit in a North Carolina federal court over its $433 million deal for the assets of bankrupt Dean Foods Co., the country’s top milk processor.

The lawsuit sought plant divestitures from DFA, a nationwide marketing co-operative representing 7,500 farms in 47 states, to complete the rescue buyout.

An attorney for DFA disclosed the deal to the U.S. District Court for the Middle District of North Carolina, according to a docket entry.

The agreement would resolve a partial challenge to the rescue buyout brought by regional supermarket chain ...