Corporation v.Cal-Maine Foods,Inc., etal., CaseNo. 1:25-cv-15084,and (d)TariqHabash, DeliaGovea, AndrewPhillips,
andCatalinaTorresv.UrnerBarryPublications,Inc.,Cal-MaineFoods,Inc.,etal.,CaseNo.1:25-cv-14112;and(3)the
following lawsuits in the WesternDistrict of Wisconsin:(a) Matthew Edlin v. Cal-Maine Foods,Inc., et al., Case No. 3:25-cv-
946and(b)IndiaPrice,LakiaSession,andKarenSolomonv.Cal-MaineFoods,Inc.,etal.,CaseNo.3:25-cv-1016.The
lawsuits generallyallege that theCompany,along with otheregg producers and industryassociations, conspired toartificially
inflate the prices of conventional shelleggs nationwide, primarily through manipulation of industryprice benchmarks (such a
s
theUrnerBarryEggIndexandEggsClearinghouse,Inc.spotmarket),coordinatedreportingandsupplyrestrictions,
particularly during the calendar year 2022 avian flu outbreak. In each case, the plaintiff seeks certification of a putative class of
either direct orindirect purchasers, monetarydamages, injunctiverelief, attorneys’ fees,and, insome cases,restitution under
Section 1 of the Sherman Act, 15 U.S.C.§ 1 (the “Sherman Act”) andvarious state antitrust andconsumer protection statutes.
OnNovember 19,2025,a motiontotransfer allcasestotheSouthernDistrictof Indianawas filedwiththeJointPanelon
Multidistrict Litigation (“JPML”) toconsolidate the actions for pre-trial proceedings.The defendants, includingthe Company,
have respondedtosuch motionalso seekingconsolidation intheSouthern Districtof Indiana.The partiesineach casehave
agreed to stay the deadline forthe Company toanswer or otherwise respond to thecomplaints pending JPML proceedings. No
discoveryhastakenplaceinanyoftheactions.TheCompanydisputesplaintiffs’allegationsineach oftheseactionsand
intends to vigorously defend itself in theseactions.
Civil Investigative Demand
InMarch2025,theCompanyreceivedaCivilInvestigativeDemand(“CID”)fromtheDepartmentofJustice(“DOJ”)in
connection with an antitrust investigation to determine whether there is,has been or may bea violation of theantitrust laws by
anticompetitive conductbyand amongegg producers.In August2025, theCompany receiveda subpoenafrom theStateof
New Yorkrequesting information and documentsrelated to its investigationof anticompetitive conduct and high eggprices in
the eggindustry.Additionally, variousstate AttorneysGeneral have soughtto jointhe DOJ’sinvestigation orhave requested
access to the confidential disclosures by the Company to DOJ.The Company is complying with the CID and the subpoena and
cooperating with the investigations. Managementcannot predict the eventual scope, duration oroutcome of these investigations
and is unable to estimate the amount or rangeof potential losses, if any, at this time.
State of Texas v.Cal-Maine Foods, Inc. d/b/a Wharton;and Wharton County Foods,LLC
On April 23, 2020,the Company and itssubsidiary Wharton County Foods, LLC (“WCF”) were named as defendantsin State
of Texasv.Cal-Maine Foods,Inc. d/b/aWharton; andWharton CountyFoods, LLC,Cause No.2020-25427, inthe District
Court ofHarris County,Texas.The Stateof Texas(the “State”) assertedclaims basedon theCompany’sand WCF’salleged
violationoftheTexasDeceptiveTradePractices—ConsumerProtectionAct,Tex.Bus.&Com.Code§§17.41-17.63
(“DTPA”).TheStateclaimedthattheCompanyandWCFofferedshelleggsatexcessive orexorbitantpricesduringthe
COVID-19stateofemergencyandmademisleadingstatementsaboutshelleggprices.TheStatesoughttemporaryand
permanentinjunctionsagainsttheCompanyandWCFtopreventfurtherallegedviolationsoftheDTPA,alongwithover
$
100,000
in damages. On August 13,2020, the court granted thedefendants’ motion to dismiss theState’s original petition with
prejudice. On September 11, 2020, the State fileda notice of appeal, which was assigned to the TexasCourt of Appeals for the
FirstDistrict.OnAugust16,2022,theappealscourtreversedandremandedthecasebacktothetrialcourtforfurther
proceedings. On October 31, 2022, theCompany and WCF appealed the First District Court’s decision to the Supreme Court of
Texas.On September29, 2023,the Supreme Courtof Texasdenied theCompany’s Petitionfor Reviewand remanded tothe
trialcourtforfurtherproceedings.OnNovember30,2024,theStatefiledanamendedpetition,primarilytoaddressa
procedural deficiencythatrequiredtheStatetogenerallypleaditwasseekingmonetaryreliefover$
1.0
millionincluding
restitution,civilpenalties,attorney’sfeesandcosts.Pre-trialproceedingsareprogressinginaccordancewiththecourt’s
schedule. Management believesthe risk of material loss related to thismatter to be remote.
Kraft Foods Global, Inc. et al. v. United Egg Producers,Inc. et al.
On September 25, 2008,the Company was namedas one ofseveral defendants in numerousantitrust cases involvingthe U.S.
shellegg industry.The Companysettled allof thesecases, exceptfor theclaimsof certainplaintiffs whosought substantial
damages allegedly arisingfrom thepurchase ofegg products(as opposedto shelleggs). Theseremaining plaintiffsare Kraft
Food Global, Inc., General Mills,Inc., and Nestle USA, Inc. (the“Egg Products Plaintiffs”) and, untila subsequent settlement
was reached as describedbelow, The Kellogg Company.
On September13, 2019, thecase withthe Egg Products Plaintiffswas remanded from amulti-district litigation proceedingin
theUnitedStatesDistrictCourtfor theEasternDistrictof Pennsylvania,Inre ProcessedEggProductsAntitrustLitigation,
MDL No. 2002, to the United States District Court for the Northern District of Illinois, Kraft Foods Global, Inc. et al.v. United
EggProducers, Inc.etal., CaseNo. 1:11-cv-8808, fortrial.The EggProducts Plaintiffsalleged thatthe Companyand other
defendantsviolatedSection1oftheShermanAct, 15.U.S.C.§1,byagreeing tolimit theproduction ofeggsand thereby