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It's Sunny Side Up In Philadelphia For Plaintiffs In Egg Price-Fixing Settlement

Posted  June 10, 2010

While it may not really be always sunny in Philadelphia, it’s certainly a bright day for plaintiffs in the In re Processed Eggs Antitrust Litigation, who have announced that Land O’Lakes Inc. and two of its subsidiaries, Moark and Norco Ranch Inc., have agreed to settle the egg price-fixing case in the Eastern District of Pennsylvania for $25 million and a promise to cooperate in litigation against the remaining defendants.

Direct purchasers of shell eggs and egg products filed this class action in 2008 against several egg producers alleging that they participated in an industry wide price-fixing conspiracy.  They also allege that several egg trade associations, including United Egg Producers and United States Egg Marketers, coordinated the conspiracy.  The plaintiffs claim that the defendants conspired to restrict the egg supply through hen reductions, cage space requirements and exporting eggs at a loss which allegedly raised the price of eggs and egg products.

The plaintiffs previously settled with Sparboe Farms.  Remaining defendants include other egg producers such as Cal-Maine Foods Inc., Michael Foods Inc., and Rose Acre Farms.

The current settlement covers all direct purchasers of eggs and egg products since 2000 and is awaiting approval by the court.

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