A federal jury in Illinois ordered $17.7 million in damages — an amount tripled to greater than $53 million under federal law — to several food manufacturing firms who had sued major egg producers over a conspiracy to limit the egg supply in the US.
The jury ruled last week that the egg producers used various means to limit the domestic supply of eggs to increase the price of products in the course of the 2000s.
The timeframe of the conspiracy was a problem throughout the case; jurors ultimately determined damages occurred between 2004 and 2008.
The damages verdict was reached Friday in the Northern District of Illinois.
According to federal antitrust law, the damages are mechanically tripled, bringing the overall to over $53 million.
Court documents on the decision weren’t available Friday evening, but statements from the manufacturers’ attorney and one in every of the egg producers confirmed a complete of about $17.7 million.
“We’re extremely grateful for the jury’s service and findings,” Brandon Fox, an attorney representing the food manufacturers, said in a press release. “This was a very important case for many reasons, and the jury’s award recognizes its significance.”
Attorneys for the 4 egg suppliers named in the lawsuit didn’t immediately return phone messages on Friday.
Court documents show the defendants have denied the claims.
The egg suppliers include the family company of its former Chair John Rust, who’s running for the US Senate in Indiana.
In a written statement on the decision, Rust said the jury’s decision “will likely be appealed.”
The jury found that the egg suppliers exported eggs abroad to reduce the general supply in the domestic market, in addition to limited the variety of chickens through means including cage space, early slaughter and flock reduction, court documents say.
Jurors were specifically told not to consider newer changes in egg pricing during their deliberations.
Food manufacturers joining as plaintiffs in the lawsuit against the egg producers are Kraft Foods Global, Inc., The Kellogg Company, General Mills, Inc. and Nestle USA, Inc.
The jury found the egg suppliers who participated in the conspiracy were 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 Rust.
Rose Acre Farms, which identifies itself because the second-largest egg producer in the US, disagreed with the jury’s verdict in a written statement.
“Rose Acre has and continues to steadfastly deny being a part of any anticompetitive egg price-fixing conspiracy, and we’ll proceed to explore and consider all legal options, including post-trial relief and appeal,” the statement said.
Cal-Maine Foods, Inc. said in a written statement it has petitioned the court to rule in its favor and can proceed to evaluate its options, “including, if needed, 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 stays dissatisfied with the decision as Cal-Maine Foods continues to consider that the Company did nothing mistaken,” the statement said.
Email messages sent to the United Egg Producers and United States Egg Marketers representatives weren’t immediately returned Friday.
In his statement, Rust attacked his opponent US Rep. Jim Banks, saying he has sided with “mega corporations over the American farmer” in the aftermath of the jury’s ruling.
“Voters can make certain that, if elected, Banks will bring his anti-agriculture and pro-mega corporation platform to the chamber,” Rust said.
In response, Banks said in a written statement, “Hoosiers aren’t going to vote for a crook.”
Rust is currently suing Indiana’s Secretary of State over a contested state law that would prevent his name from getting on the first ballot as a Republican candidate.
According to the law, a candidate must vote in two primaries with the party they’re affiliated with or the county party chair must approve their candidacy. Rust has argued the law is unconstitutional and vague.
Rust faces an uphill battle for the GOP nomination: Banks has received the endorsement of the Indiana Republican Party and former President Donald Trump.
The seat is currently held by Republican Mike Braun, who’s as an alternative running for governor next yr.