Texas Attorney General Ken Paxton has reached a significant settlement with egg supplier Cal-Maine Foods, under which Cal-Maine will donate more than two million eggs to food banks throughout the state. This settlement follows a lawsuit against Cal-Maine for allegedly grossly inflating egg prices by approximately 300% during the height of the pandemic in April 2020. Paxton stated, "My office will crack down on any corporation illegally raising prices on Texans," underscoring his commitment to penalize and prevent exploitation in times of crisis, as reported by the Office of the Attorney General.
A closer breakdown of the settlement reveals that Cal-Maine is to provide approximately 180,000 dozen eggs to various food banks. Notable recipients include the North Texas Food Bank and Houston Food Bank, each set to receive at least 30,000 dozen eggs. Moreover, Tarrant Area, Central Texas, and San Antonio Food Banks are to receive a minimum of 20,000 dozen eggs each. Other regional food banks across Texas have also been allocated different quantities, ensuring that the distribution casts a wide net across the state. The donations are slated for completion within a 120-day timeframe, providing immediate relief to those in need.
As part of the settlement's terms, Cal-Maine is also prohibited from price gouging during designated disaster periods, a practice that would violate the Texas Deceptive Trade Practices Act. This restraint aims to prevent repeats of the company's 2020 conduct, when they took advantage of the market conditions precipitated by COVID-19 to hike up egg prices. The settlement signifies a victory for consumer protection and represents a deterrent to potential price gougers.
Cal-Maine's legally mandated contribution comes at a time when Texas food banks continue to face high demand from communities still recovering from the economic fallout of the pandemic. The over two million eggs expected to circulate through Texas' hunger relief efforts represent not just a gesture of recompensation, but a substantial boon to food security in the region. Details on the egg distribution and further stipulations of the settlement are publicly available on the Attorney General's website.
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