A federal jury in Illinois ordered $17.7 million in damages – an amount tripled to more than $53 million under federal law – to several food manufacturers who sued major egg producers for conspiring to limit the supply of eggs in had sued the United States.
The jury concluded last week that egg producers used various means in the 2000s to limit the domestic supply of eggs and thus increase the price of the products. The time frame of the conspiracy was an issue throughout the case; The jury ultimately concluded that the damage occurred between 2004 and 2008.
The damages verdict was entered Friday in the Northern District of Illinois. Under federal antitrust law, damages are automatically tripled, bringing the total to over $53 million. Court documents related to the ruling were not readily available Friday evening, but statements from the manufacturer’s attorney and one of the egg producers confirmed a total amount of about $17.7 million.
Brandon Fox, an attorney representing the food manufacturers, said in a statement, “We are extremely grateful to the jury for their work and results. This was an important case for many reasons and the jury’s award recognizes its importance.”
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Court documents show the defendants have denied the claims.
The egg suppliers include the family business of its former chairman, John Rust, who is running for U.S. Senate in Indiana. In a written statement on the verdict, Rust said the jury’s decision was “appealable.”
The jury concluded that the egg suppliers exported eggs abroad to reduce the overall supply in the domestic market and limited the number of chickens through measures such as cage space, early slaughter and flock reduction, court documents said.
Jurors were specifically told not to take any recent changes in egg prices into account during their deliberations.
Food manufacturers joining as plaintiffs in the lawsuit against the egg producers include Kraft Foods Global, Inc., The Kellogg Company, General Mills, Inc. and Nestle USA, Inc. The jury found that the The Cal-Maine egg suppliers involved in the conspiracy were Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc., and Rose Acre Farms, Inc., a southern Indiana company previously chaired by Rust.
Rose Acre Farms, which describes itself as the second-largest egg producer in the U.S., disagreed with the jury’s verdict in a written statement.
“Rose Acre has and continues to steadfastly deny that it was part of an anti-competitive conspiracy to fix egg prices, and we will continue to evaluate and consider all legal options, including legal remedies and post-trial appeals,” the statement said.
Cal-Maine Foods, Inc. said in a written statement that it has filed a motion with the court for a ruling in its favor and will continue to consider its options, “including, if appropriate, an appeal.”
“Cal-Maine Foods respects the jury’s decision and appreciates that the damages awarded by the jury are relatively small compared to the damages sought, but remains disappointed with the verdict as Cal-Maine Foods continues to believe that the company has done nothing wrong,” the statement said.
Email messages to representatives for United Egg Producers and United States Egg Marketers were not immediately returned Friday.
In his statement, Rust attacked his opponent, U.S. Rep. Jim Banks, saying he sided with “megacorporations over American farmers” after the jury’s verdict.
“Voters can be confident that if elected, Banks will bring his anti-farm, pro-megacorporation platform to the chamber,” Rust said.
In response, Banks said in a written statement, “Hoosiers will not vote for a crook.”
Rust is currently suing Indiana’s secretary of state over a controversial state law that could prevent his name from being included in the primary as a Republican candidate. By law, a candidate must vote in two primaries with the party to which he belongs or the district party chairman must approve his candidacy. Rust has argued the law is unconstitutional and vague.
Rust faces an uphill battle for the GOP nomination: Banks has received the support 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.