Published: January 11, 2011

Grocery Wholesaler and Local Grocery Stores File Antitrust Lawsuit Against Egg Producers and Egg Industry Trade Groups for Anticompetitive Conduct Designed to Increase Egg Prices

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KANSAS CITY, Mo. - (BUSINESS WIRE) - Stueve Siegel Hanson LLP (www.stuevesiegel.com) represents Associated Wholesale Grocers, Inc., Four B Corporation, Cosentino Group, Inc., Cosentino Enterprises, Inc., Mid Am Food Enterprises, Inc. and CNW Foods, Inc. who recently filed a lawsuit against egg producers and egg industry trade groups for anticompetitive conduct resulting in the artificial inflation of egg prices.

The lawsuit alleges that the defendants reduced and constrained the supply of eggs in order to artificially inflate the price of eggs. These coordinated efforts, which was enforced by powerful industry trade groups, decreased the supply of eggs in the United States and dramatically increased the prices of shell eggs and egg products. Plaintiffs therefore were forced to pay higher prices for the products. The lawsuit further alleges the defendants used the following anticompetitive methods to increase the price of eggs:

Defendants agreed to reduce overall number of hens, which was intended to reduce the egg supply;
Defendants increased exports, which again decreased the nation's supply of eggs; and
Defendants intentionally decreased the lifecycle of hens, which also decreased the supply of eggs.

Defendants' collusion resulted in an unprecedented increase in egg prices and windfall profits for the egg producer defendants.

The defendants in this case include four egg industry trade groups (United Egg Producers, United Egg Association, United States Egg Marketers and the Missouri Egg Council, Inc.) as well as individual egg producers (Land O'Lakes, Inc.; Moark Egg Corporation, Moark, LLC; Norco Ranch, Inc.; Michael Foods, Inc.; Rose Acre Farms, Inc.; National Food Corporation, Cal-Maine Foods, Inc.; Hillandale Farms, Inc.; Hillandale Farms of PA., Inc.; Hillandale-Gettysburg, L.P.; Hillandale Farms East, Inc.; Ohio Fresh Eggs, LLC; Daybreak Foods, Inc.; Midwest Poultry Services, L.P.; Nucal Foods, Inc.; R.W. Sauder Inc. and Sparboe Farms, Inc.).

Patrick J. Stueve, a partner with the Kansas City-based law firm Stueve Siegel Hanson LLP, represents the plaintiffs. "Defendants' coordination dramatically decreased the number of eggs produced in this country, which directly resulted in consumers paying significantly higher prices for eggs," said Mr. Stueve.

Further questions about the lawsuit should be directed to Patrick J. Stueve or Rachel E. Schwartz of Stueve Siegel Hanson at 816-714-7100.

Stueve Siegel Hanson LLP represents plaintiffs and defendants nationwide in complex business disputes on a contingency basis.