The case filed by the Attorney General of Texas accusing Cal-Maine Foods of price gouging during the surge in demand in late March and early April has been dismissed with prejudice.  In the ruling the Judge noted, “This case really is about the state’s unconstitutional rejection and attempted manipulation of the free market and existing contracts between sophisticated businesses.” 

In a statement following the dismissal, Cal-Maine noted, “We have never engaged in price gouging.  Since 1957 we have striven to operate with honesty and integrity and will continue to do so going forward.” 

Forsman Farms sued by the state of Minnesota settled with the State and retroactively reset prices to a lower level offering refunds to retail customers. Forsman agreed to obtain permission from the state of Minnesota to raise prices more than 20 percent. It is questioned wheter the State of Minnesota will hold supermarkets to a condition that they will not reduce the price paid by more than 20 percent without authorization.

Hillandale Farms is currently the subject of a lawsuit by the state of New York. The outcome in Texas represents case law that should be considered by the court.

A significant argument raised by Cal-Maine in its defense is that a state cannot regulate national shell egg markets since this would constitute interference in interstate trade, a reality that will obviously be raised in the Hillandale defense.