**Major U.S. food companies win lawsuit accusing top egg producers of price-fixing**
On November 22nd, Kraft, General Mills, and other major food companies succeeded in convincing a federal jury in Chicago that top U.S. egg producers were guilty of unlawfully inflating prices. The verdict sets the stage for a second trial to determine the damages from their actions.
The jury’s decision comes after a more than five-week antitrust trial against a group of egg producers, including Cal-Maine Foods and Rose Acre, over allegations that they conspired to charge artificially high prices, effectively “rigging” the market.
Cal-Maine expressed disappointment with the verdict, claiming that the jury had rejected key portions of the plaintiffs’ claims. The country’s largest egg producer and distributor asserts that it will vigorously contest the food producers’ damages presentation in court.
Trade associations United Egg Producers and United States Egg Marketers were also found liable in the lawsuit, with the defendants denying any wrongdoing.
Next week, the food producer plaintiffs, which also include Kellogg and Nestle, will argue for damages during a two-day second phase of the trial beginning on November 28th before the same jury.
Representatives for the plaintiffs have not yet proposed a specific damages amount, but their law firm Jenner & Block says they have spent “hundreds of millions of dollars” on egg products.
The lawsuit alleged that the defendants conspired to limit the supply of eggs in a scheme to boost prices, a claim that Kraft and other plaintiffs will now seek to substantiate in the damages trial.
The case is being overseen by U.S. District Judge Steven Seeger and is expected to take roughly two days.
For plaintiffs: Brandon Fox of Jenner & Block
For United Egg Producers and United States Egg Marketers: Robin Sumner of Troutman Pepper Hamilton Sanders
For Cal-Maine: Patrick Collins of King & Spalding
For Rose Acre: James King of Porter, Wright, Morris & Arthur
*Reporting by Mike Scarcella*
*Our Standards: The Thomson Reuters Trust Principles.*