Exhibit 99.1
-MORE-
Contacts:
Sherman Miller, President and CEO
Max P. Bowman, Vice President and CFO
(601) 948-6813
CAL-MAINE FOODS, INC. ISSUES STATEMENT ON JURY DECISION
RIDGELAND,
Miss.
(December
1,
2023)
―
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.