Texas food banks to receive 2 million eggs following pandemic lawsuit over price gouging

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(Photo by Matthias Bein/picture alliance via Getty Images)

AUSTIN - Attorney General Ken Paxton has finalized a settlement with Cal-Maine Foods Inc. that will provide more than 2 million eggs to food banks across the state following allegations of price gouging.

The agreement stems from a lawsuit filed in April 2020. Paxton accused the company, which is among the largest egg suppliers in Texas, of illegally raising prices by approximately 300 percent during the COVID-19 pandemic.

Timeline:

As part of the settlement, Cal-Maine will donate 180,000 dozen large eggs to various Texas food banks within the next 120 days. Paxton said his office will crack down on any corporation that illegally raises prices on Texans. He described the settlement as an important step toward securing justice for what he called the company’s unethical actions.

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Where are the eggs going?

• At least 30,000 dozen eggs to each of the following food banks: North Texas Food Bank and Houston Food Bank;
• At least 20,000 dozen eggs to each of the following food banks: Tarrant Area Food Bank; Central Texas Food Bank; and San Antonio Food Bank;
• At least 10,000 dozen eggs to each of the following food banks: Food Bank of the Rio Grande Valley; East Texas Food Bank; and El Pasoans Fighting Hunger Food Bank;
• At least 5,000 dozen eggs to each of the following food banks: Coastal Bend Food Bank; South Texas Food Bank; Southeast Texas Food Bank; and South Plains Food Bank; and
• At least 2,000 dozen eggs to each of the following food banks: High Plains Food Bank; West Texas Food Bank; Food Bank of West Central Texas; Food Bank of the Golden Crescent; and Wichita Falls Area Food Bank.

The settlement also prohibits Cal-Maine from selling eggs at prices that violate the Texas Deceptive Trade Practices Act during designated disaster periods. Paxton said these reforms are intended to prevent future instances of price gouging similar to the conduct reported in 2020.