Indianapolis Federal Jury Orders Egg Producers to Pay $17.7M for Conspiring to Limit Supplies in 2000s
A federal jury in Illinois has awarded $17.7 million in damages – a sum tripled to over $53 million under federal law – to several food production companies that had sued major egg producers over a conspiracy to limit the egg supply in the United States.
Last week, the jury found that the egg producers used various tactics to restrict the domestic supply of eggs in order to drive up prices during the 2000s. After deliberating, the jurors determined that the actions in question took place between 2004 and 2008.
The damages decision was reached Friday in the Northern District of Illinois. The damages were automatically tripled under federal antitrust law, bringing the total to over $53 million. While court documents were not publicly available last Friday, statements from the lawyers for the food makers and one of the egg producers confirmed a total of about $17.7 million.
Brandon Fox, a lawyer representing the food makers, said in a statement, “We are incredibly grateful for the jury’s service and findings. This was a crucial case for many reasons, and the jury’s award recognizes its significance.”
As of last Friday, lawyers for the four egg suppliers named in the lawsuit had not returned phone messages. Court documents show that the accused parties have denied the claims brought against them.
The egg suppliers identified in the lawsuit include Cal-Maine Foods Inc., United Egg Producers Inc., United States Egg Marketers Inc., and Rose Acre Farms Inc., a southern Indiana business formerly chaired by John Rust, who is running for the U.S. Senate. In a written statement, Rust said the jury’s decision “will be appealed.”
The jury determined that the egg suppliers exported eggs abroad to reduce the overall supply in the domestic market and also limited the number of chickens through methods including cage space, early slaughter, and flock reduction, according to court documents.
Food makers that joined as plaintiffs in the lawsuit against the egg producers are Kraft Foods Global Inc., Kellogg Co., General Mills Inc., and Nestle USA Inc.
Rose Acre Farms disagreed with the jury’s decision in a written statement, saying, “Rose Acre has and continues to steadfastly deny being part of any anti-competitive egg price-fixing conspiracy, and we will continue to explore and consider all legal options, including post-trial relief and appeal.”
Cal-Maine Foods expressed its disappointment with the decision, asserting that the company believes it did nothing wrong and has petitioned the court to rule in its favor. The company also stated it will continue to evaluate its options, including, if necessary, an appeal.
