ILLINOIS —An Illinois jury found on Tuesday that several companies, including one co-owned by a U.S. Senate candidate from Seymour, Indiana, conspired to restrict the supply of eggs to drive up the prices.
Rose Acre Farms Inc. — previously chaired by John Rust, who is running to succeed U.S. Sen. Mike Braun — Cal-Maine Foods Inc., and two egg-industry groups will have to pay damages to General Mills Inc., a Kraft Heinz Co. unit, Kellogg Co., and Nestle SA. Damages to be awarded will be determined on Nov. 29, as reported by Bloomberg.
Rust didn’t immediately respond to a request for comment.
Rust is challenging U.S. Rep. Jim Banks, a Columbia City Republican, who has the backing of the Indiana Republican Party, a commanding lead, and Braun’s endorsement.
“Today’s verdict proves John Rust isn’t just a conman pretending to be a Republican, he is a crook who exploits working class Hoosiers across Indiana for his own financial gain,” Banks said in a statement. “While Indiana families struggle to put food on the table, he’s making it even harder to do that. Hoosier families deserve to know whether he is bankrolling his campaign with money he made ripping off Hoosier families by gouging the price of eggs.”
According to court filings, the business competitors coordinated to limit the supply of eggs by timing their slaughters earlier and delaying hatchings — starting in 2000. In particular, Rose Acre exported eggs even when it didn’t have a surplus, decreasing the domestic supply, and “under the guise of animal welfare” reduced henhouse density.
Emails included in the final arguments include messages from Marcus Rust to John Rust, his brother, detailing plans to reduce the egg supply under financial pressure from egg industry groups.
Marcus Rust now chairs Rose Acres after John Rust stepped down. The company is the second-largest egg producer in the United States.
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