A federal jury in Illinois has awarded $17.7 million in damages – an amount tripled to more than $53 million under federal law – to several food companies that sued major egg producers for conspiring to limit the supply of eggs in the US.
The jury found last week that the egg producers used various means to limit the domestic supply of eggs in order to raise the price of the products during the 2000s.
The timeframe of the conspiracy was an issue throughout the case, with the jury ultimately finding that the damages occurred between 2004 and 2008.
The damages verdict was returned on Friday in the Northern District of Illinois.
Under federal antitrust law, the damages are automatically tripled, bringing the total to more than $53 million.
Court documents on the verdict were not readily available on Friday evening, but statements from the manufacturers’ lawyer and one of the egg producers confirmed a total of about $17.7 million.
“We are extremely grateful for the jury’s service and their findings,” Brandon Fox, a lawyer representing the food manufacturers, said in a statement. “This was an important case for many reasons, and the jury’s award recognises its significance.”
Lawyers for the four egg suppliers named in the lawsuit did not immediately return phone messages Friday.
The defendants have denied the claims, according to court documents.
The egg suppliers include the family business of their former chairman, John Rust, who’s running for the US Senate in Indiana.
In a written statement about the verdict, Rust said the jury’s decision “will be appealed”.
The jury found that the egg suppliers exported eggs overseas to reduce the overall supply in the domestic market and limited the number of hens through means such as cage space, early slaughter and flock reduction, according to court documents.
Jurors were specifically told not to consider recent changes in egg prices in their deliberations.
Food manufacturers who joined 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 that the egg suppliers involved 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 formerly chaired by Rust.
Rose Acre Farms, which describes itself as the second largest egg producer in the US, disagreed with the jury’s verdict in a written statement.
“Rose Acre has and will continue to vigorously deny that it was part of any anticompetitive conspiracy to fix egg prices, and we will continue to explore and consider all legal options, including post-trial relief and an appeal,” the statement said.
Cal-Maine Foods, Inc. said in a written statement that it has asked the court to rule in its favour and will continue to evaluate its options, “including, if necessary, 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 remains disappointed with the verdict as Cal-Maine Foods continues to believe that the company did nothing wrong,” the statement said.
Emails sent to representatives of the United Egg Producers and United States Egg Marketers were not immediately returned on Friday.
In his statement, Rust attacked his opponent, U.S. Rep. Jim Banks, saying he had sided with “mega-corporations over the American farmer” in the wake of the jury’s decision.
“Voters can be assured that if elected, Banks will bring his anti-agriculture, pro-mega-corporation platform to the House floor,” Rust said.
In response, Banks said in a written statement, “Hoosiers won’t vote for a crook.
Rust is currently suing the Indiana Secretary of State over a controversial state law that could prevent his name from appearing on the primary ballot as a Republican candidate.
Under the law, a candidate must vote in two primaries with the party to which they belong, or the county party chairman must approve their candidacy. Rust has argued that the law is unconstitutional and vague.
Rust faces an uphill battle for the GOP nomination: Banks has the backing of the Indiana Republican Party and former President Donald Trump.
The seat is currently held by Republican Mike Braun, who is instead running for governor next year.
