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Texas Settlement With Cal-Maine Sends 2.16 Million Eggs to Food Banks

The court-approved deal resolves Texas’s 2020 price-gouging suit by imposing a decade-long disaster-pricing injunction with no admission of wrongdoing.

Overview

  • Cal-Maine Foods, Inc. and Wharton County Foods, LLC must donate 180,000 dozen eggs—2,160,000 eggs—to designated Texas food banks within 120 days.
  • Allocations include 30,000 dozen each to the North Texas Food Bank and Houston Food Bank, 20,000 dozen each to Tarrant Area, Central Texas, and San Antonio, with additional shipments to 12 other regional food banks.
  • The agreement installs a 10-year injunction prohibiting egg prices or price demands during declared disasters that would violate the Texas Deceptive Trade Practices Act.
  • The settlement ends the state’s April 2020 lawsuit alleging roughly 300% pandemic-era price increases, concluding without a trial or any admission of liability by the companies.
  • The order mandates proof-of-donation records, monthly progress reporting, and internal compliance notices, and allows Texas to seek court enforcement if the terms are violated.