Kraft and Other Companies Set to Pursue Damages Following Victory in US Egg-Price Fixing Case

The image of the Kraft logo outside its headquarters in Northfield, Illinois, on March 25, 2015, symbolized its position as a dominant player in the food and beverage industry. That year, the company merged with H.J. Heinz Co to form the world’s fifth-largest food and beverage company.

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On Nov 22, 2017, Kraft, General Mills, and other major food companies won a federal jury’s decision in Chicago against top U.S. egg producers for unlawfully inflating prices. This paved the way for a second trial to determine damages.

The claims of rigging the market were directed at egg producers like Cal-Maine Foods and Rose Acre, alleging that they had conspired to charge artificially high prices. While the jury’s verdict on liability was a blow to the defendants, they intend to challenge the damages in court.

The plaintiffs, including Kellogg and Nestle, are preparing to present their case for damages at a two-day trial starting on Nov. 28, 2017. A spokesperson for Jenner & Block, the plaintiffs’ law firm, stated that no specific damages amount had been proposed prior to the trial.

The plaintiffs had alleged that Cal-Maine and other defendants had plotted to limit the supply of eggs to increase prices. Their lawyer, Brandon Fox, expressed satisfaction with the jury’s decision, holding the defendants accountable.

The egg producers’ defense emphasized consumer demand and independent business decisions as the driving factors behind their actions. This complex trial’s impact has been substantial, and the damages trial is expected to take two days.

Judge Steven Seeger is presiding over the case at the U.S. District Court for the Northern District of Illinois.

Contact Information:

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