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General Mills Inc., a Kraft Heinz Co. unit, Kellogg Co., and Nestle SA were found to have overpaid for eggs due to a conspiracy by major egg producers and industry groups, as ruled by an Illinois federal jury on Tuesday.
The jury’s decision demands that Cal-Maine Foods Inc. and Rose Acre Farms Inc., along with two egg industry trade groups, pay damages to the affected food companies. The upcoming trial, scheduled to commence on November 29, will determine the amount of damages, with a statutory trebling in effect.
This case’s outcome in favor of the food companies may inspire similar legal actions against food producers engaging in anticompetitive practices. Attorneys representing the food companies expressed satisfaction with the verdict, emphasizing a focus on the damages phase.
During the reading of the verdict, defense lawyers appeared surprised and declined immediate comment. This decision marks a significant win for the food companies who had alleged conspiracy and manipulation of egg prices from 2004 to 2008.
The jury concluded that the conspiracy had limited the egg supply through various actions, affecting trade unreasonably and violating federal antitrust laws. However, it did not find every egg producer associated with the trade groups complicit in the conspiracy and dismissed claims of injury between 2009 and 2012.
Judge Steven Seeger commended both sides for their advocacy, describing their performances as exemplary. He acknowledged their efforts by sharing egg-containing brownies after the conclusion of arguments, referring to their legal battle as an “All-Star game” in the courtroom.
The legal representation includes Jenner & Block LLP for the food company plaintiffs, Porter Wright Morris and Arthur LLP for Rose Acre Farms, and King and Spalding LLP and Brown Fox PLLC for Cal-Maine Foods. Troutman Pepper Hamilton Sanders LLP represents United Egg Producers Inc. and US Egg Marketers Inc.
