Post Holdings has agreed to settle the egg antitrust class action claims against its subsidiary Michael Foods in the US, with a $75m payment.
A class action lawsuit, In re Processed Egg Products Antitrust Litigation, was lodged in 2008 in a Pennsylvania federal court by direct purchasers of shell eggs from Michael Foods.
The litigation is confined to a time period that precedes the Post Holdings’ $2.45bn acquisition of Michael Foods.
In June 2014, Post Holdings, the parent company of Post Foods, announced the completion of the acquisition of MFI Holding Corporation (Michael Foods) and its related entities for $2.45bn.
Post Holdings president and CEO Rob Vitale said: “While we remain confident that our conduct has at all times been lawful and entirely appropriate, we believe this settlement is in the best interest of our shareholders, employees, customers and consumers because it effectively eliminates the distraction, expense, and exposure of this complex litigation.”
The consumer packaged goods company said that the settlement it has agreed does not affect the lawsuit filed on behalf of indirect buyers of shell eggs.
A pre-tax charge is expected to be incurred by Post Holdings in the first quarter of its next fiscal year for the settlement.
Post Holdings said that the settlement is likely to be approved by relevant regulators. However, it added that it cannot assure that the court will approve the proposed agreement between the concerned parties.
Michael Foods produces a wide range of value-added egg products, potato products, and cheese and dairy-case foods. Its brands include Papetti's, Crystal Farms, AllWhites, Simply Potatoes, Abbotsford Farms and Eggland's Best.
