Jury ruling on egg prices favors food companies

CHICAGO — General Mills, Inc., the former Kellogg Co., Kraft Heinz Co. and Nestle USA, Inc. all will receive damages after a jury in a US district court on Nov. 20 ruled in their favor in a lawsuit over the price of eggs. The verdict came in the US District Court for the Northern District of Illinois in Chicago. Beginning Nov. 29, the court will meet to decide upon the damages. Among the defendants are Cal-Maine Foods, Inc., Rose Acre Farms, Inc., the United Egg Producers, Inc. and the United States Egg Marketers, Inc.

The lawsuit originally was filed on Dec. 12, 2011, which was before Kraft Foods and Heinz merged and before Kellogg Co. spun off into WK Kellogg Co and Kellanova. The plaintiffs alleged the defendants, starting in at least 1999, engaged in a conspiracy to control supply and artificially maintain and increase the price of eggs. The lawsuit indicated the defendants undertook the alleged conspiracy through a series of collective actions, including short-term measures, control through the United Egg Producers’ Certified Guidelines and coordinated, large-scale exports.

Cal-Maine Foods, Inc. plans to contest the plaintiffs’ presentation of purported damages and will assess the decision and options for appeal. The company pointed out the plaintiffs alleged a conspiracy running from 1998-2008 with damages extending through 2012, but the jury determined any alleged damages would be limited to 2004-08.

“We are incredibly pleased by the jury’s decision to hold egg producers Cal-Maine Foods and Rose Acre Farms accountable alongside United Egg Producers and United States Egg Marketers for conspiring to inflate the price of eggs,” said Brandon Fox, a partner for Jenner & Block LLP representing the food companies. “For the first time, the defendants have been held liable for their antitrust violations. We are now going to turn our attention to the damages phase.”