Cal-Maine Settles Egg Antitrust Class Action Claims

Cal-Maine Foods (NASDAQ: CALM  ) , the largest producer and distributor of fresh eggs in the U.S., reached an agreement in principle to settle all direct purchaser class claims against it, the company announced today. The allegations against Cal-Maine were that it -- along with other large egg producers -- conspired to reduce the egg supply so as to raise egg prices.

The company will settle those direct purchaser class claims with one payment of $28 million, subject to formal documentation and approval by the court after all class members have been notified. The case is the In re Processed Egg Products Antitrust litigation pending in Pennsylvania federal court. The non-class direct purchaser plaintiffs may choose to participate in the settlement or pursue their individual claims.

The company said it will continue to defend itself in the remaining cases.

"We remain confident that our conduct has at all times been lawful, appropriate, and fair to our customers," said Dolph Baker, chairman and CEO of Cal-Maine.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2552814, ~/Articles/ArticleHandler.aspx, 8/29/2014 1:39:02 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement