A federal jury in the Northern District of Illinois has ruled in favor of several food manufacturing companies involved in a lawsuit against major egg producers, ordering $17.7 million in damages. Under federal law, the damages were automatically tripled, resulting in a total award of over $53 million. The lawsuit alleged a conspiracy by the egg producers to limit the domestic egg supply in order to drive up prices.

The jury's decision, reached last week, determined that the egg producers used various methods to restrict the availability of eggs in the United States between 2004 and 2008. Court documents noted that the suppliers engaged in practices such as exporting eggs abroad, reducing the number of chickens through cage space limitations, early slaughter, and flock reduction.

The plaintiffs in the case included major food manufacturers Kraft Foods Global, Inc., The Kellogg Company, General Mills, Inc., and Nestle USA, Inc. They claimed that the egg suppliers involved in the conspiracy were Cal-Maine Foods, Inc., United Egg Producers, Inc., United States Egg Marketers, Inc., and Rose Acre Farms, Inc.

Brandon Fox, an attorney representing the food manufacturers, expressed gratitude for the jury's service and findings, emphasizing the significance of the case. However, the egg suppliers, including Rose Acre Farms, strongly disagreed with the verdict and intend to appeal.

John Rust, the former Chair of Rose Acre Farms and a candidate for the U.S. Senate in Indiana, criticized his opponent U.S. Rep. Jim Banks for allegedly siding with "mega corporations over the American farmer" after the jury's ruling. Banks responded by stating, "Hoosiers aren't going to vote for a crook."

It is important to note that the jury was specifically instructed not to consider more recent changes in egg pricing during their deliberations. The damages awarded were related to the period between 2004 and 2008, when the alleged conspiracy took place.

Cal-Maine Foods, Inc. expressed disappointment with the verdict, asserting that the company believes it did nothing wrong and intends to petition the court for a favorable ruling and explore all available legal options, including an appeal.

The egg producers implicated in the lawsuit have not provided immediate responses to the jury's decision. The damages verdict, automatically tripled under federal antitrust law, highlights the repercussions faced by companies found guilty of engaging in anti-competitive behavior.

As the legal battle continues, the outcome of the appeal and potential post-trial relief will be closely watched. The multi-million-dollar award serves as a reminder that conspiring to limit supply and manipulate prices can have serious consequences for businesses in the United States.