Egg Producer Gouged Prices When Pandemic Hit, Lawsuit Says

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One of the country’s largest egg producers illegally inflated prices when the pandemic hit New York, taking in $4 million as it charged up to four times more per carton, state Attorney General Letitia James charged in a lawsuit Tuesday.

James claims that in March and April, Hillandale Farms price gouged more than 4 million cartons of eggs sold to grocery store chains, U.S. military facilities and wholesale food distributors. The lawsuit seeks restitution for consumers.

“As this pandemic ravaged our country, Hillandale exploited hardworking New Yorkers to line its own pockets,” James said in a prepared release.

An email seeking comment was sent to Hillandale.

The suit filed in state court in New York City alleges that Hillandale raised prices on eggs sold to Stop & Shop, BJ’s Wholesale Club, Associated Supermarkets and the commissary stores at the U.S. Military Academy at West Point, Fort Hamilton and Fort Drum. In one case, per-dozen prices for large, white eggs charged to Western Beef supermarkets went from 59 cents to $1.10 in January to $2.93 by the end of March.

The lawsuit alleges that prices did not reflect increased costs, but higher consumer demand during the pandemic. James’ office said it had received complaints from retail customers who found the jacked-up prices “ridiculous” and “disgraceful.”

The lawsuit brings claims against Hillandale Farms Corp., Hillandale Farms East, Inc., Hillandale Farms of PA, Inc., Hillandale Farms Conn, LLC, Hillandale Farms of Delaware, Inc. and Hillandale-Gettysburg, L.P.

(AP)




4 COMMENTS

  1. Only the eggs were gouged. What about the big companies like proctor and gamble that created fake shortages in paper towels and toilet paper so that they can raise prices sky high while they make the rolls smaller. Big companies can get away with it while the consumers lose out big time.

  2. The lawsuit alleges that prices did not reflect increased costs, but higher consumer demand during the pandemic.

    What’s wrong with that? That’s exactly what prices are SUPPOSED to reflect. This moron doesn’t understand the most basic principle of economics. In a free market prices are not driven by costs but by supply and demand.