Jury Says Egg Producers Colluded To Raise Prices

A federal jury in Illinois has awarded $17.7 million in damages to food manufacturing companies involved in a lawsuit against major egg producers, according to an article in Fortune. Per U.S. antitrust law, the damages were tripled to over $53 million.

The jury found that the egg producers engaged in a conspiracy to limit the domestic egg supply in the U.S. to increase egg prices. The time frame during which the conspiracy was active was a point of contention. Jurors determined that the damages occurred between 2004 and 2008.

The egg suppliers, including Cal-Maine Foods, Inc., United Egg Producers, Inc., and others, denied the claims. Some have expressed intentions to appeal the decision. Food manufacturers joining the lawsuit included Kraft Foods Global; The Kellogg Company; General Mills; and Nestle USA.

The jury found that the suppliers used strategies to reduce supply in the domestic market such as exporting eggs abroad and limiting the number of chickens through various means including reducing cage space, early slaughter, and flock reduction.

“We are extremely grateful for the jury’s service and findings,” Brandon Fox, an attorney representing the food manufacturers, said in a statement. “This was an important case for many reasons, and the jury’s award recognizes its significance.”