VegNews Daily

Egg Supplier Will Pay $28M in Antitrust Violation

Cal-Maine Foods Inc. has agreed to pay a large sum to settle claims that it conspired with farmers to fix egg prices.

While egg supplier Cal-Maine Foods Inc. is just one among a number of farmers and suppliers accused of violating antitrust laws by conspiring and creating an egg supply shortage in order to fix prices, Cal-Maine has settled and agreed to pay $28 million, reports The Wall Street Journal. The group’s scheme included killing egg-laying hens and baby chicks in order to create a supply shortage. The lawsuit was filed against the US’ biggest egg trade group and claims its actions raised wholesale egg prices in 2008 by up to 40 percent. According to animal-welfare organization Mercy For Animals, this is not the first time Cal-Maine has been found guilty of animal abuse. A 2010 undercover investigation showed hens crammed into tiny cages with visible injuries and living in filthy condition; in the same year Cal-Maine issue a recall of 288,000 eggs, MFA reports.

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