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One of the country’s largest egg producers inflated prices illegally when the pandemic hit New York, taking in $ 4 million because it charged four times more per carton, Attorney General Letitia James said on Tuesday.
James claims that in March and April, the price of Hillandale Farms sold more than 4 million cartons of eggs to supermarket chains, U.S. military facilities and distributors for food growers. The lawsuit seeks compensation for consumers.
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“While this pandemic was destroying our country, Hillandale exploited hard-working New Yorkers to line up their own pockets,” James said in a prepared release.
Hillandale said in a statement that it was ready to defend against the allegations in court. The company said the pandemic “caused a major disruption in every sector of the economy, including the egg industry.”
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Hillandale said eggs have historically been subject to volatile prices. “But our approach to pricing has been consistent for decades, and without complaint, or that has led to profit or loss, and the last several months have been no exception.”
The case filed in state court in New York City alleges that Hillandale increased prices on eggs sold to Stop & Shop, BJ’s Wholesale Club, Associated Supermarkets and the commissioner stores at the U.S. Military Academy at West Point, Fort Hamilton and Fort Drum. In one case, per dozen prices for large white eggs charged at Western Beef supermarkets went from 59 cents to $ 1.10 in January to $ 2.93 at the end of March.
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The lawsuit claims that prices do not increase costs but increase consumer demand during the pandemic. James’ office said it received complaints from retailers who found the jacked-up prices “ridiculous” and “disgraceful”.
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The lawsuit is against Hillandale Farms Corp., Hillandale Farms East, Inc., Hillandale Farms of PA, Inc., Hillandale Farms Conn, LLC, Hillandale Farms of Delaware, Inc. and Hillandale-Gettysburg, LP
