NY AG Sues Egg Producer For Pandemic Price Gouging

WEST POINT, NY — New York Attorney General Letitia James announced a lawsuit Tuesday against one of the country’s largest producers and wholesale distributors of eggs, for price gouging during the coronavirus pandemic.

In March and April 2020, the AG alleged, Hillandale Farms earned an extra $4 million by quadrupling the prices of more than 4 million cartons of eggs sold to major grocery store chains, U.S. military facilities, and wholesale food distributors throughout the state.

“As this pandemic ravaged our country, Hillandale exploited hardworking New Yorkers to line its own pockets,” James said in a news release. “In less than two months, Hillandale made millions by cheating our most vulnerable communities and our servicemembers, actions that are both unlawful and truly rotten. I will always stand up for working people, especially when they are taken advantage of by corporate greed."

For example, the AG's office alleged, the company based in Ohio and Pennsylvania gouged prices on eggs sold to the commissary store at the U.S. Military Academy at West Point. In April 2020, Hillandale charged West Point $3.15 per carton of large eggs, almost quadruple the $0.84 price it charged West Point in January.

The suit alleges that Hillandale raised its prices similarly on eggs sold to Stop & Shop, BJ’s Wholesale Club, Associated Supermarkets, and the commissary stores at the U.S. military bases at Fort Hamilton and Fort Drum. Customers complained to the AG's office.

The lawsuit alleges that Hillandale has raised its prices not because of increased costs, but simply to take advantage of higher consumer demand during the pandemic.