An Illinois Jury Finds U.S. Egg Producers Guilty of Price Fixing Conspiracy
INDIANAPOLIS – In a long-running federal lawsuit, an Illinois jury has ruled that several major egg producers conspired to manipulate the supply of eggs in the United States, leading to increased prices. The case, originally filed 12 years ago, alleged that egg suppliers, including companies like Kraft Foods Global, Inc. and The Kellogg Company, engaged in various tactics to restrict the domestic supply of eggs between 2004 and 2008.
The jury’s unanimous verdict, delivered on Tuesday in the Northern District of Illinois, determined that damages occurred during the specified timeframe. The next phase of the trial will decide the extent of those damages.
Notably, the lawsuit involves the family company of an Indiana egg farmer who is currently running for a U.S. Senate seat in the state. However, the defendants named in the lawsuit, including Cal-Maine Foods and Rose Acre Farms, denied the allegations and have not yet responded to requests for comment.
Evidence presented in court documents revealed that the egg suppliers deliberately reduced the overall supply in the domestic market through the export of eggs. They also employed various means to limit the number of chickens, such as reducing cage space, early slaughter, and flock reduction.
Brandon Fox, an attorney representing the food manufacturers, expressed satisfaction with the jury’s decision, stating, We are incredibly pleased by the jury’s decision to hold egg producers… accountable… for conspiring to inflate the price of eggs. He went on to say that the focus would now shift to determining the damages.
Joining the lawsuit as plaintiffs alongside the food manufacturers are General Mills, Inc. and Nestle USA, Inc. The egg suppliers involved in the alleged conspiracy include Cal-Maine Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc., and Rose Acre Farms, Inc., which is based in southern Indiana and was previously chaired by John Rust.
Mr. Rust, who is also running for Indiana’s U.S. Senate seat in 2024, declined to comment on the ongoing litigation. Rose Acre Farms prides itself on being the second-largest egg producer in the United States.
Beyond the courtroom, Mr. Rust is facing additional challenges related to his candidacy. He is currently in a legal battle with Indiana’s Secretary of State over a disputed state law that could impact his eligibility for the primary ballot as a Republican candidate. The law requires a candidate to participate in two primaries with their affiliated party or receive approval from the county party chair. Mr. Rust has criticized the law as unconstitutional and vague.
Mr. Rust’s bid for the GOP nomination faces an uphill battle, as his opponent, U.S. Rep. Jim Banks, has secured the endorsement of the Indiana Republican Party and former President Donald Trump. The seat is currently held by Republican Mike Braun, who has opted to run for governor in the upcoming election.
The verdict in this high-profile case serves as a significant milestone, marking the first time the egg producers have been held liable for their alleged antitrust violations. As the trial continues to unfold in the coming weeks, the focus will shift to determining the damages inflicted by the price-fixing conspiracy that impacted the egg market from 2004 to 2008.
