Cal-Maine Foods, Inc. Issues Statement on Recent Court Decision
23 November 2023 - 1:39AM
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, Cal-Maine Foods along with many
other fresh egg producers in the United States, responded to
growing demands from consumers and retailers to improve the overall
treatment of egg laying hens. These programs were in line with
other prevailing animal welfare laws across the protein industry
and were not intended to restrict supply and affect prices. The
programs were supported by our customers and form the basis of many
state laws across the country today.
On November 21, 2023, a jury found that defendants, including
Cal-Maine Foods, Inc., were liable for an alleged conspiracy to
inflate egg product prices in the case 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. The
damages phase of the trial is scheduled to take place on November
28 and 29, 2023.
While we are disappointed with the overall decision, we
prevailed on a number of issues that we believe are important and
should ultimately define this case. The plaintiffs alleged a
conspiracy running from 1998-2008 with damages extending through
2012. The court and jury determined that any alleged damages would
be limited to the period 2004-2008. The jury also rejected other
key portions of the plaintiffs’ case that we believe should limit
the plaintiffs’ damages request further.
Cal-Maine Foods will vigorously contest plaintiffs’ presentation
of purported damages and will continue to assess the decision and
options for 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/20231122489891/en/
Sherman Miller, President and CEO Max P. Bowman, Vice President
and CFO (601) 948-6813
Cal Maine Foods (NASDAQ:CALM)
Historical Stock Chart
From Apr 2024 to May 2024
Cal Maine Foods (NASDAQ:CALM)
Historical Stock Chart
From May 2023 to May 2024