Egg Industry Lawsuit

Several major food companies have filed a lawsuit against an egg industry group, claiming a conspiracy to fix prices.

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Last week, a group of major food companies filed a federal antitrust complaint against United Egg Producers, United States Egg Marketers, and 11 other egg farms and distributors, claiming that the groups conspired to control egg prices by tampering with supply to increase demand. The plaintiffs, which include Kraft Foods, Kellogg, General Mills, and Nestle, allege that the egg groups profited from reducing their supply to raise prices through means such as destroying hens and chicks. The complaint also claims that almost 2,000 small egg farms went out of business as a result of the conspiracy. The food companies are hoping to receive monetary damages for violations of antitrust and fraudulent concealment laws, as well as a ruling to bar the producers from manipulating prices in the future.

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