HOUSTON - Cal-Maine Foods, the dominant egg seller in Texas, has been dismissed from a price-gouging lawsuit.
The state of Texas filed suit against Cal-Maine (Wharton County Foods) on April 23 in Harris County District Court.
Court records show the company’s motion to dismiss was granted on Aug. 13, 2020, and the original petition was dismissed with prejudice.
"We are grateful the Court dismissed with prejudice all claims brought by the State of Texas against Cal-Maine Foods,” the company said in a statement. “As we demonstrated to the Court in our court filings and during oral argument, Cal-Maine Foods has never engaged in price gouging. Since 1957, we have strived to operate with honesty and integrity and will continue to do so going forward.”
Case background
According to the suit, the pandemic increased the sale of eggs because families are eating at home more. In Texas, the increased demand for eggs has resulted in prices jumping 300 percent or more for generic eggs.
“On information and belief, Cal-Maine has not experienced any supply issues or other disruptions that are driving it to charge more for eggs,” the suit states. “It is simply charging more because it can, or, more specifically, because the pandemic caused market demand to jump.
“In summary, Cal-Maine is taking advantage of a disaster … and selling eggs at exorbitant prices after Governor Abbott declared a disaster on March 13.”
Attorney General Ken Paxton brought the suit through his Consumer Protection Division.