Post Holdings reaches agreement to settles egg anti-trust class action claims

Post Holdings has reached an agreement to settle all class claims against Michael Foods filed in 2008.

The claims were asserted by direct purchasers in 'Re Processed Egg Products Antitrust Litigation', a class action lawsuit filed in federal court in the Eastern District of Pennsylvania, US.

Michael Foods will settle all class claims with a $75m payment. 

This litigation was filed before Post’s purchase of Michael Foods, which was closed in June 2014.

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.”

Post expects to post a pre-tax charge for this settlement in the first quarter of the 2017 fiscal year.

This matter will be treated as an adjustment for purposes of calculating adjusted EBITDA and other non-GAAP measures.

Under current law, the settlement is deductible for federal income tax purposes.

Terms of the settlement must be formally documented and are subject to approval by the court following notice to all class members.

Post expects the settlement to receive the requisite approval.

This settlement does not impact the action filed on behalf of indirect shell egg purchasers, or dismissed claims by direct egg product purchasers.  The former were unsuccessful in class certification, while the dismissed claims by direct purchasers is being appealed.