LEWISBURG — West Virginia Attorney General Patrick Morrisey’s office has filed a second lawsuit alleging an egg supplier unlawfully drove up the cost of eggs at major grocery stores during the height of Coronavirus pandemic in March and April.
The lawsuit, filed Aug. 10 in Greenbrier Circuit Court, alleges Merchants Distributors LLC of North Carolina increased prices by more than 200 percent for shoppers at Piggly Wiggly, IGA and Walmart stores throughout West Virginia. The price hikes involved Morning Fresh Farms, Better Valu and SunUps brand eggs.
Last month, Morrisey’s office filed a similar complaint against a Virginia-based egg supplier, which denied those claims.
Morrisey
“Price gouging is against the law in West Virginia,” Morrisey said in a statement. “The coronavirus emergency represents a time when everyone should unite to help one another – not an opportunity for businesses to unlawfully take advantage of those shopping for something as basic as eggs.”
The price hikes affected Walmart shoppers across West Virginia, along with IGA and Piggly Wiggly customers in Boone, Braxton, Cabell, Harrison, Kanawha, Pocahontas, Upshur, Webster and Wood counties.
The AG’s office claims Merchants Distributors raised the price of a dozen Grade A, medium white eggs from about $1.18 on Feb. 24 to $4.27 on March 30. That’s an increase of 262 percent. Other egg brands and types allegedly experienced price hikes of 170 percent to 256 percent, according to the complaint.
Merchants Distributors reportedly blamed increased demand, a drop in supply and the Easter holiday, but an investigation by the AG’s office found no shortage existed. The lawsuit also states the defendant’s reasons do not exempt its actions from the state’s price gouging law.
The complaint accuses Merchants Distributors of unfair price practices and violations of the West Virginia Consumer Credit and Protection Act. Morrisey’s office seeks a court order forcing the company to pay restitution to consumers who paid above the authorized price and a civil penalty of $5,000 for each violation of the price gouging statute, along with an injunction that prohibits any similar conduct.
The AG’s office says more than 60 consumer reports have been referred to investigators and dozens of subpoenas and letters have been sent to businesses whose conduct may have violated the state’s price gouging law or landlords whose eviction threats may have underplayed the need for a court order.
Assistant AGs Melissa L. Alder and Elizabeth D. Grant are handling the case for Morrisey’s office.
Greenbrier Circuit Court case number 20-C-75