Hillandale Farms said it unequivocally denies the allegations that it gouged the prices charged for eggs during the COVID-19 pandemic.
The company faces a lawsuit, filed in the Supreme Court of the State of New York on August 11 by New York Attorney General Letitia James. In her lawsuit, she alleged Hillandale gouged the prices of more than four million cartons of eggs sold to major grocery store chains, U.S. military facilities and wholesale food distributors throughout the state. James further alleges that Hillandale charged New York customers – many of them with low incomes – up to four times the pre-pandemic price for a carton of eggs.
Hillandale Farms, a family-owned and operated business that has been selling eggs since the late 1950s, in a statement, defended itself and said it is prepared to defend against these allegations in court, if necessary
“As one of the larger egg producers in the country, we – including our more than 1,500 employees – take great pride in the quality of our products and the integrity of our operations. We were shocked and dismayed to learn of the New York attorney general’s lawsuit,” the company stated.
“The COVID-19 pandemic caused a massive disruption in every sector of the economy, including the egg industry. As retail demand for eggs reached historically high levels earlier this year, our dedicated personnel rose to the challenge and worked tirelessly to meet that demand through the most consistent production and delivery measures possible. We wanted to be sure that eggs would remain on store shelves for customers in New York and other markets.
“Historically, eggs, like some other commodities, have been subject to volatile pricing. As an example, prices for eggs are now below what they were in August 2019, and well below what they were in January through March 2019.
“But our approach to pricing has been consistent for decades, and without complaint, whether that has led to profits or losses, and the last several months have been no exception. We look to a third-party company, Urner Barry, which specializes in the timely, accurate and unbiased reporting of market news and quotations throughout the food industry,” the statement read.
Allegations of price gouging on behalf of two other egg companies have led to other lawsuits in other states.
In July, West Virginia Attorney General Patrick Morrisey filed a lawsuit against Dutt & Wagner, claiming similar allegations against that company. Texas Attorney General Ken Paxton filed a similar lawsuit against Cal-Maine Foods in April.
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