Cal-Maine Foods, Inc. Issues Statement on Jury Decision
01 Dicembre 2023 - 9:16PM
Business Wire
Cal-Maine Foods, Inc. (NASDAQ: CALM) (“Cal-Maine Foods” or the
“Company”), the largest producer and distributor of fresh shell
eggs in the United States, today issued the following
statement:
Approximately 20 years ago, United Egg Producers (UEP) 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 (Kraft Foods Global, Inc. et al.
v. United Egg Producers, Inc. et al., Case No. 1:11-cv-8808 in the
U.S. District Court for the Northern District of Illinois), 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.
About Cal-Maine Foods
Cal-Maine Foods, Inc. is primarily engaged in the production,
grading, packaging, marketing and distribution of fresh shell eggs,
including conventional, cage-free, organic, brown, free-range,
pasture-raised and nutritionally enhanced eggs. The Company, which
is headquartered in Ridgeland, Mississippi, is the largest producer
and distributor of fresh shell eggs in the United States and sells
the majority of its shell eggs in states across the southwestern,
southeastern, mid-western and mid-Atlantic regions of the United
States.
Forward Looking Statements
Statements contained in this press release that are not
historical facts are forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of 1995.
The forward-looking statements are based on management’s current
intent, belief, expectations, estimates and projections regarding
our company and our industry. These statements are not guarantees
of future performance and involve risks, uncertainties, assumptions
and other factors that are difficult to predict and may be beyond
our control. The factors that could cause actual results to differ
materially from those projected in the forward-looking statements
include, among others, (i) the risk factors set forth in the
Company’s SEC filings (including its Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K),
(ii) the risks and hazards inherent in the shell egg business
(including disease, pests, weather conditions and potential for
recall), including but not limited to the most recent outbreak of
highly pathogenic avian influenza affecting poultry in the U.S.,
Canada and other countries that was first detected in commercial
flocks in the U.S. in February 2022, (iii) changes in the demand
for and market prices of shell eggs and feed costs, (iv) our
ability to predict and meet demand for cage-free and other
specialty eggs, (v) risks, changes or obligations that could result
from our future acquisition of new flocks or businesses and risks
or changes that may cause conditions to completing a pending
acquisition not to be met, (vi) risks relating to increased costs
and higher and potentially further increases in inflation and
interest rates, which began in response to market conditions caused
in part by the COVID-19 pandemic and which generally have been
exacerbated by the Russia-Ukraine war that began in February 2022,
(vii) our ability to retain existing customers, acquire new
customers and grow our product mix, and (viii) adverse results in
pending litigation matters. SEC filings may be obtained from the
SEC or the Company’s website, www.calmainefoods.com. Readers are
cautioned not to place undue reliance on forward-looking statements
because, while we believe the assumptions on which the
forward-looking statements are based are reasonable, there can be
no assurance that these forward-looking statements will prove to be
accurate. Further, the forward-looking statements included herein
are only made as of the respective dates thereof, or if no date is
stated, as of the date hereof. Except as otherwise required by law,
we disclaim any intent or obligation to publicly update these
forward-looking statements, whether as a result of new information,
future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231201112056/en/
Sherman Miller, President and CEO Max P. Bowman, Vice President
and CFO (601) 948-6813
Grafico Azioni Cal Maine Foods (NASDAQ:CALM)
Storico
Da Ago 2024 a Set 2024
Grafico Azioni Cal Maine Foods (NASDAQ:CALM)
Storico
Da Set 2023 a Set 2024