Cal-Maine Foods believes plaintiffs’ claims ‘fail as a matter of law’

Cal-Maine Foods, which identifies itself as the largest producer and distributor of fresh shell eggs in the United States, issued the following statement: “Approximately 20 years ago, United Egg Producers responded to growing public demand to improve the overall treatment of egg laying hens by adopting the UEP animal-welfare certified program. The UEP certified program was based on the recommendations of an independent scientific advisory committee, developed as a scientifically sound, voluntary program, supported by consumers, customers and numerous trade groups. This program was not designed to restrict supply and affect prices. In fact, despite the filing of this case almost 13 years ago, this program continues to serve as the foundation of numerous state laws, remains the predominant animal welfare standard for laying hens, and is still required by substantially all customers, to this day. The plaintiffs alleged that the prices they paid for processed egg products were increased by the defendants’ conduct. The plaintiffs, however, continue to demand egg products created from UEP Certified eggs and/or eggs from hens that otherwise are humanely raised. On December 1, 2023, the jury returned a verdict awarding the plaintiffs $17,777,579 in damages. This decision is not final and remains subject to the motion for a directed verdict noted below. Cal-Maine Foods would share responsibility with the other three defendants for the payment of this amount, trebled, plus reasonable attorneys’ fees and subject to previous settlement credits. Cal-Maine Foods respects the jury’s decision and appreciates that the damages awarded by the jury are relatively modest compared to the damages sought but remains disappointed with the verdict as Cal-Maine Foods continues to believe that the Company did nothing wrong. The two earlier trials based on substantially the same facts and legal arguments resulted in findings of no conspiracy and/or damages. Because Cal-Maine Foods believes that the plaintiffs’ claims fail as a matter of law, Cal-Maine Foods has petitioned the Court to enter a judgment in its favor, known as a directed verdict, notwithstanding the jury’s decision. Significantly, the jury found that the UEP certified program itself does not constitute a restraint of trade. Also, because the egg producers in this case only represent 15.5 percent of the market, Cal-Maine Foods believes the law is clear that the defendants in issue did not have sufficient market power to restrain trade. Cal-Maine Foods looks forward to the Court’s consideration of these arguments and will continue to evaluate its options, including, if necessary, an appeal.”