An Illinois federal jury decided Tuesday that General Mills Inc., a Kraft Heinz Co. unit, Kellogg Co., and Nestle SA likely overpaid for eggs for years because the country’s largest producers and two trade groups conspired to restrict the supply, reports Bloomberg Law.
The egg producers, Cal-Maine Foods Inc. and Rose Acre Farms Inc., along with United Egg Producers and United States Egg Marketers will have to pay damages.
“We are incredibly pleased by the jury’s decision,” said Brandon Fox, a Jenner & Block LLP partner representing the food companies. “For the first time, the defendants have been held liable for their antitrust violations. We are now going to turn our attention to the damages phase.”
In 2011, the food companies sued the egg producers and trade groups, alleging they engaged in a conspiracy to reduce supply in an attempt to increase the price of eggs. The jury found the food companies were injured by the conspiracy from October 2004 to December 2008.
In two other cases, egg buyer plaintiffs including grocery stores and another group of purchasers were previously unable to convince a jury that egg prices were fixed by the producers. Full Story
Related: Egg Prices Stay High; Eggs' Impact Felt in January Dairy, Deli, Bakery Sales.