A federal jury in Illinois has ordered several major egg producers to pay $17.7 million in damages, a number that is tripled to over $53 million under federal law. The case centered around a conspiracy to limit the egg supply in the U.S. during the 2000s, ultimately driving up product prices.
Last week, the jury found that the egg manufacturers engaged in various tactics to artificially limit the domestic egg supply. This led to the damages occurring between 2004 and 2008. According to federal antitrust law, the damages were automatically tripled, resulting in a total of over $53 million.
Brandon Fox, an attorney representing the food producers, expressed gratitude for the jury’s service and findings, emphasizing the importance of the case. However, lawyers for the egg providers named in the suit have denied the claims and plan to appeal the decision.
The egg producers included in the lawsuit are accused of exportation, reducing the number of chickens, and other methods to limit the availability of eggs in the domestic market. Notably, the jury was instructed not to consider recent changes in egg prices during their deliberations.
Several major food producers, including Kraft Foods Global, Inc., The Kellogg Company, General Mills, Inc., and Nestle USA, Inc. joined the lawsuit against the egg manufacturers. The jury found that the egg suppliers involved in the conspiracy were Cal-Maine Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc., and Rose Acre Farms, Inc.
Rose Acre Farms, described as the second-largest egg producer in the U.S., disagreed with the jury’s decision and plans to explore legal options, including a possible appeal. Similarly, Cal-Maine Foods, Inc. has petitioned the court to rule in its favor and is considering further legal action.
