A federal jury in Illinois ordered $17.7 million in damages — an quantity tripled to greater than $53 million underneath federal legislation — to a number of meals manufacturing corporations who had sued main egg producers over a conspiracy to limit the egg supply in the U.S.
The jury dominated final week that the egg producers used numerous means to restrict the home provide of eggs to extend the worth of merchandise in the course of the 2000s. The time-frame of the conspiracy was a difficulty all through the case; jurors finally decided damages occurred between 2004 and 2008.
The damages verdict was reached Friday within the Northern District of Illinois. In keeping with federal antitrust legislation, the damages are routinely tripled, bringing the whole to over $53 million. Court docket paperwork on the decision weren’t available Friday night, however statements from the producers’ lawyer and one of many egg producers confirmed a complete of about $17.7 million.
“We are extremely grateful for the jury’s service and findings,” Brandon Fox, an lawyer representing the meals producers, mentioned in a press release. “This was an important case for many reasons, and the jury’s award recognizes its significance.”
Attorneys for the 4 egg suppliers named within the lawsuit didn’t instantly return cellphone messages on Friday. Court docket paperwork present the defendants have denied the claims.
The egg suppliers embody the household firm of its former Chair John Rust, who’s operating for the U.S. Senate in Indiana. In a written assertion on the decision, Rust mentioned the jury’s determination “will be appealed.”
The jury discovered that the egg suppliers exported eggs overseas to cut back the general provide within the home market, in addition to restricted the variety of chickens via means together with cage area, early slaughter and flock discount, court docket paperwork say.
Jurors had been particularly advised to not contemplate newer adjustments in egg pricing throughout their deliberations.
Meals producers becoming a member of as plaintiffs within the lawsuit in opposition to the egg producers are Kraft Meals International, Inc., The Kellogg Firm, General Mills, Inc. and Nestle USA, Inc. The jury discovered the egg suppliers who participated within the conspiracy had been Cal-Maine Foods, Inc., United Egg Producers, Inc., United States Egg Entrepreneurs, Inc. and Rose Acre Farms, Inc., a southern Indiana-based firm beforehand chaired by Rust.
Rose Acre Farms, which identifies itself because the second-largest egg producer within the U.S., disagreed with the jury’s verdict in a written assertion.
“Rose Acre has and continues to steadfastly deny being part of any anticompetitive egg price-fixing conspiracy, and we will continue to explore and consider all legal options, including post-trial relief and appeal,” the assertion mentioned.
Cal-Maine Foods, Inc. mentioned in a written assertion it has petitioned the court docket to rule in its favor and can proceed to judge its choices, “including, if necessary, an appeal.”
“Cal-Maine Foods respects the jury’s decision and appreciates that the damages awarded by the jury are relatively modest compared to the damages sought but remains disappointed with the verdict as Cal-Maine Foods continues to believe that the Company did nothing wrong,” the assertion mentioned.
E-mail messages despatched to the United Egg Producers and United States Egg Entrepreneurs representatives weren’t instantly returned Friday.
In his assertion, Rust attacked his opponent U.S. Rep. Jim Banks, saying he has sided with “mega corporations over the American farmer” within the aftermath of the jury’s ruling.
“Voters can be certain that, if elected, Banks will bring his anti-agriculture and pro-mega corporation platform to the chamber,” Rust mentioned.
In response, Banks mentioned in a written assertion, “Hoosiers aren’t going to vote for a crook.”
Rust is presently suing Indiana’s Secretary of State over a contested state law that would stop his title from getting on the first poll as a Republican candidate. In keeping with the legislation, a candidate should vote in two primaries with the celebration they’re affiliated with or the county celebration chair should approve their candidacy. Rust has argued the legislation is unconstitutional and imprecise.
Rust faces an uphill battle for the GOP nomination: Banks has acquired the endorsement of the Indiana Republican Social gathering and former President Donald Trump. The seat is presently held by Republican Mike Braun, who’s as an alternative running for governor subsequent yr.
