USALife.info / NEWS / 2023 / 12 / 02 / EGG SUPPLIERS FINED $17.7 MILLION FOR PRICE GOUGING IN THE 2000S
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Egg suppliers fined $17.7 million for price gouging in the 2000s

16:58 02.12.2023

In a groundbreaking and significant ruling, a federal jury in Illinois has ordered a staggering $17.7 million in damages to be paid to several food manufacturing companies who had filed a lawsuit against major egg producers. This amount is set to be tripled to over $53 million due to federal law. The jury's decision comes after the egg producers were found guilty of engaging in a conspiracy to limit the egg supply within the United States, ultimately driving up prices of egg products during the 2000s.

Throughout the case, the time frame of the conspiracy was a contentious issue. However, the jurors ultimately determined that the damages occurred between 2004 and 2008. The verdict was reached last Friday in the Northern District of Illinois, and according to federal antitrust law, the damages are automatically tripled, bringing the total to over $53 million. Unfortunately, court documents regarding the verdict were not readily available on Friday evening. However, statements from the manufacturers' attorney and one of the egg producers confirmed a total damages award of approximately $17.7 million.

Brandon Fox, the attorney representing the food manufacturers, expressed his gratitude for the jury's service and findings, recognizing the significance of the case. Fox stated, "This was an important case for many reasons, and the jury's award recognizes its significance." On the other hand, court documents reveal that the defendants, including the family company of former Chair John Rust, who is currently running for the U.S. Senate in Indiana, have denied the claims.

The jury's findings indicate that the egg suppliers involved in the conspiracy took various measures to limit the domestic supply of eggs, thereby inflating prices. These tactics included exporting eggs abroad to decrease the overall supply in the domestic market, as well as implementing strategies such as limited cage space, early slaughter, and flock reduction. Notably, jurors were instructed not to consider more recent changes in egg pricing during their deliberations.

Joining as plaintiffs in the lawsuit against the egg producers were well-known food manufacturers Kraft Foods Global, Inc., The Kellogg Company, General Mills, Inc., and Nestle USA, Inc. The jury identified the egg suppliers who participated in the conspiracy as Cal-Maine Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc., and Rose Acre Farms, Inc., a southern Indiana-based company previously chaired by John Rust.

Rose Acre Farms, which proudly identifies itself as the second-largest egg producer in the U.S., expressed strong disagreement with the jury's verdict in a written statement. The company vehemently denies any involvement in an anticompetitive egg price-fixing conspiracy and asserts that it will pursue all legal options, including post-trial relief and appeal. Similarly, Cal-Maine Foods issued a statement expressing respect for the jury's decision but disappointment with the verdict, maintaining that the company did nothing wrong.

Efforts to obtain comments from representatives of the United Egg Producers and United States Egg Marketers were unsuccessful as email messages went unanswered on Friday. However, John Rust, who is not only the former Chair of Rose Acre Farms but is also a candidate for the U.S. Senate in Indiana, criticized his opponent, U.S. Rep. Jim Banks, accusing him of siding with "mega corporations over the American farmer" following the jury's ruling. In response, Banks countered by stating, "Hoosiers aren't going to vote for a crook."

It is worth noting that John Rust is currently embroiled in a legal battle with Indiana's Secretary of State over a controversial state law that could potentially hinder his candidacy for the Republican primary ballot. According to the law, a candidate must participate in two primaries with the party they are affiliated with, or their candidacy must be approved by the county party chair. Rust argues that this law is unconstitutional and vague. Nevertheless, Rust faces an uphill battle as Banks has secured endorsements from the Indiana Republican Party and former President Donald Trump. It is important to mention that the seat in contention is currently held by Republican Mike Braun, who intends to run for governor next year.

As of now, attorneys representing the four egg suppliers implicated in the lawsuit have not responded to phone messages left on Friday. The silence from these attorneys leaves many curious about their perspective on the ruling and their potential next steps in response to the damages awarded.

/ Saturday, December 2, 2023, 4:58 PM /

themes:  Donald Trump  Illinois  Indiana



18/05/2024    info@usalife.info
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