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⚠ The Class Action Cost $99 MillionLow threat

Deere & Company (DE) — threat to the moat

Deere paid $99 million to settle a class action over repair costs, a small sum that concedes how the aftermarket used to work.

Before the FTC settled, farmers sued. Deere agreed in April 2026 to pay $99 million into a settlement fund for farms and farmers in a class action over the costs of and access to repairs1. The 10-Q confirms that the accrual included losses associated with a settlement in a consolidated multidistrict class action antitrust lawsuit, recorded in the fourth quarter of fiscal 20252. The fiscal 2025 special items included a litigation accrual of $95 million3.

Deere right-to-repair litigation, 2025-2026Jan 2025FTC, Illinois andMinnesota sueQ4 FY2025litigation accrual $95MApr 2026$99M class-actionsettlement fundJul 2026FTC and statessettle; 10-year orderDeere Form 10-K FY2025, Forms 10-Q Q2 and Q3 FY2026; Claims Journal; FTC
Two settlements in four months.

The sum is small against Deere's earnings. What it represents is not. A class action over repair costs is a claim that the dealer network charged farmers more than a competitive market would have, because only dealers had the tools. That is a direct attack on the economics described on Parts, Many of Them Proprietary.

The settlement and the FTC order that followed (on Independent Repair Shops, Now Equipped by Deere) close the legal chapter. They open a commercial one, in which Deere must keep dealer service attractive without the exclusivity that used to guarantee it.

The settlement covered farms and farmers who were part of the class action over costs and access to repairs4. At 3 May 2026 Deere's total accrued losses on unresolved legal matters were about $175 million, including that settlement5. The federal suit had been brought on 15 January 2025 by the FTC with Illinois and Minnesota, and Arizona, Michigan and Wisconsin later joined6.

The cost of that chapter will show in the dealers' service income, which Deere does not report, and in any further legal accrual, which it does. A new repair-related accrual above $100 million in any year would mean the settlements did not end the claims.

References
  1. Third-party estimateDeere agreed in April 2026 to pay $99 million into a settlement fund for farms and farmers in a class action over the costs of and access to repairs.
    Claims Journal (Reuters), 8 April 2026 - Deere agrees to pay $99 million into a settlement fund in the right-to-repair class action. — April 2026 · publ. 8 April 2026 · source ↗
  2. ReportedThe 10-Q confirms that the accrual included losses associated with a settlement in a consolidated multidistrict class action antitrust lawsuit, recorded in the fourth quarter of fiscal 2025.
    Deere & Company Form 10-Q for the quarter ended 3 May 2026 - receivable write-offs of $150 million in the first six months and the litigation accrual including the class-action settlement recorded in the fourth quarter of 2025. — Q2 FY2026 · publ. May 2026 · source ↗
  3. ReportedThe fiscal 2025 special items included a litigation accrual of $95 million.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - selected financial data, MD&A and the supplemental consolidating data for equipment operations and financial services. — FY2025 · publ. 18 December 2025 · source ↗
  4. Third-party estimateThe settlement covered farms and farmers who were part of the class action over costs and access to repairs.
    Claims Journal (Reuters), 8 April 2026 - Deere agrees to pay $99 million into a settlement fund in the right-to-repair class action. — April 2026 · publ. 8 April 2026 · source ↗
  5. ReportedAt 3 May 2026 Deere's total accrued losses on unresolved legal matters were about $175 million, including that settlement.
    Deere & Company Form 10-Q for the quarter ended 3 May 2026 - receivable write-offs of $150 million in the first six months and the litigation accrual including the class-action settlement recorded in the fourth quarter of 2025. — Q2 FY2026 · publ. May 2026 · source ↗
  6. ReportedThe federal suit had been brought on 15 January 2025 by the FTC with Illinois and Minnesota, and Arizona, Michigan and Wisconsin later joined.
    Deere & Company Form 10-K for fiscal 2025 (year ended 2 November 2025), $ millions - Item 1A risk factors and legal proceedings: the farm cycle, interest rates, tariffs, technology adoption, competition and the right-to-repair litigation. — FY2025 · publ. 18 December 2025 · source ↗
Sources
Generated October 5, 2026