The federal investigation was noted In the quarterly report filed by Land O'Lakes Aug. 18:
On March 31, 2008, MoArk, LLC received a subpoena from the U.S. Department of Justice through the U.S. Attorney for the Eastern District of Pennsylvania, to provide certain documents for the period of January 1, 2002 to March 27, 2008, related to the pricing, marketing and sales activities within its former egg products business. Moark divested its northeastern liquid and egg products business in 2004, and the remainder of its liquid and egg products business in 2006. Moark has furnished documents required by the subpoena and is cooperating with the government’s request. We cannot predict what, if any, impact this inquiry and any results from such inquiry could have on our future results of operations.
The class action lawsuit, brought by Zaza, Inc., alleges "from at least as early as January 1, 2002, through May 31, 2008 the Defendants conspired to fix, raise, maintain and/or stabilize the prices of Processed Egg Products. Because of Defendants’ unlawful conduct, Plaintiff and other class members paid artificially inflated prices for Processed Egg Products and, as a result, have suffered antitrust injury to their business or property."
The lawsuit notes that Moark, Golden Oval, and Michael Foods all referred to the Department of Justice investigation in SEC filings. Zaza, a Florida firm, is asking for three times the amount of damages sustained, and is requesting a jury trial.