Cal-Maine drops after jury finds group liable for conspiring to inflate egg prices
Investing.com -- Shares in Cal-Maine Foods (NASDAQ:CALM) slumped in early trading on Wednesday after a federal jury in Illinois found that the company, peer Rose Acre Farms, and two trade groups conspired to curb the supply of eggs in order to charge higher prices.
Cal-Maine and Rose Acre Farms, as well as trade groups United States Egg Marketers and United Egg Producers, have been ordered to pay damages to several large food processing manufacturers, including Kraft Heinz (NASDAQ:KHC), Kellogg (NYSE:K), and Nestle. The amount of damages will be determined in a trial slated to begin on Nov. 29.
The food-processors were seeking over $110 million in damages from egg producers, claiming that they schemed to export eggs and reduce the country's hen population in a bid to depress supply in the U.S. and subsequently drive up domestic prices. The 12-person jury in the U.S. District Court for the Northern District of Illnois agreed, saying that these practices violated federal antitrust laws.
In a statement, Cal-Maine said it was "disappointed with the overall decision," adding that it will continue to assess its options for a potential appeal.
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