New York authorities accuse one of the largest egg manufacturers in the U.S. Increased demand for roses amid the coronavirus pandemic this spring.
The state’s attorney general, Letitia James, on Tuesday filed a lawsuit against Hillandale Farms, alleging that the Pennsylvania company raised $4 million illegally defrauding buyers in the egg sale. Hillandale has doubled, tripled and even quadrupled the costs of eggs sold at convenience retail outlets at West Point and U.S. Army bases, as well as at Stop-Shop, BJ’s Wholesale Club, related grocery stores and other major retailers, depending on demand.
“As this pandemic devastated our country, Hillandale exploited working New Yorkers to fill their pockets,” James said as he pronounced the lawsuit. “In less than two months, Hillandale has made millions by deceiving our most vulnerable communities and service members; movements that are illegal and really rotten.”
Between January and early March, Hillandale charged shoppers between 59 cents and $1.10 for a dozen eggs. But the company increased the value to $1.49 on March 15, two days after the U.S. declared a national emergency due to the virus, and a maximum of $2.93, consistent with a dozen until the end of the month, according to demand. Prices returned to pre-pandemic levels until early May, says James.
The lawsuit also accuses Hillandale of coordinating with commodity market research firm Urner Barry to justify value increases. Hillandale and Urner Barry responded to a request for comment.
Egg costs skyrocketed in the United States in March and April as coronavirus spreads and some consumers began to harvest the food product, as well as essential items such as toilet paper and disinfectant.
In April, Texas prosecutors sued Cal-Maine Foods for raising eggs by 300%.
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