Texas Secures 2 Million Free Eggs from Cal-Maine Foods After Price Gouging Settlement

The state of Texas has reached a settlement with Cal-Maine Foods, one of the largest egg suppliers in the country, resulting in the donation of over 2 million eggs to food banks across the state. This agreement follows allegations that Cal-Maine engaged in price gouging during the early stages of the COVID-19 pandemic, raising egg prices by approximately 300% without facing significant supply disruptions. Texas Attorney General Ken Paxton initiated the lawsuit against Cal-Maine in April 2020, aiming to hold the company accountable for its pricing practices during a declared emergency.

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As part of the settlement, Cal-Maine Foods is required to donate 180,000 dozen large eggs to various food banks within the next 120 days. The North Texas Food Bank and Houston Food Bank will each receive at least 30,000 dozen eggs, while other food banks, including the Tarrant Area Food Bank, Central Texas Food Bank, and San Antonio Food Bank, will receive at least 20,000 dozen eggs each. Smaller food banks across Texas will also receive staggered amounts based on need, ensuring that the supply reaches the most vulnerable populations.

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Attorney General Ken Paxton emphasized the importance of the settlement, stating, “My office will crack down on any corporation illegally raising prices on Texans. Cal-Maine tried to take advantage of the people of Texas during the COVID-19 pandemic, and this settlement is an important step towards securing justice for the company’s unethical actions.” The settlement also includes provisions that prohibit Cal-Maine from selling eggs at prices that violate the Texas Deceptive Trade Practices Act during designated disaster periods.

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While the settlement has been welcomed as a step towards accountability, some critics argue that the legal consequences for price gouging during the pandemic have been insufficient. Alex Beene, a financial literacy instructor, noted that although many entities faced accusations of price gouging, few experienced significant legal repercussions. This sentiment reflects a broader concern regarding corporate accountability in times of crisis.

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The distribution of the donated eggs is expected to significantly benefit low-income and vulnerable residents across Texas, providing them with access to essential food supplies. The settlement serves as a reminder of the ongoing need for vigilance against price gouging, particularly during emergencies. As the state prepares for the egg distribution, it remains to be seen how these reforms will impact future corporate practices in Texas.

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• “My office will crack down on any corporation illegally raising prices on Texans,” — Ken Paxton, Texas Attorney General

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• “Cal-Maine tried to take advantage of the people of Texas during the COVID-19 pandemic, and this settlement is an important step towards securing justice for the company’s unethical actions.” — Ken Paxton, Texas Attorney General

Texas to Receive Millions of Eggs After Price Gouging Settlement

• “The settlement was the result of an egg supplier found to have raised the prices of eggs illegally by over 300 percent in the early days of the pandemic. While some entities during that period were accused of price gouging, few faced any legal consequences.” — Alex Beene, Financial Literacy Instructor

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