The Lead Off
- Three major egg producers have agreed to pay $3.3 million and donate 53 million eggs to settle allegations of price fixing.
- The U.S. Justice Department and 17 states alleged the companies coordinated pricing that led to higher egg costs for consumers.
- The companies deny wrongdoing, and the proposed settlements still require court approval.
NEW YORK (WOWO) Three major egg producers have agreed to pay a combined $3.3 million and donate 53 million eggs as part of proposed settlements resolving allegations that they illegally coordinated egg prices between 2022 and 2025, according to the U.S. Justice Department and attorneys general from 17 states.
The settlements involve Cal-Maine Foods, Versova and Hickman’s Egg Ranch. None of the companies admitted wrongdoing under the agreements, which were announced Monday and remain subject to court approval.
Allegations center on wholesale egg pricing
Federal and state officials alleged the companies worked together behind the scenes to artificially inflate daily egg price quotations between June 2022 and March 2025.
According to the complaint, the companies coordinated bids submitted to Urner Barry Publications, whose pricing index helps determine wholesale egg prices paid by grocery stores, restaurants and other commercial buyers.
Investigators alleged the conduct resulted in higher prices for consumers purchasing eggs during that period.
New York Attorney General Letitia James said the companies’ actions increased costs for families and businesses.
“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” James said. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.”
Settlement terms
Under the proposed agreements, the companies will collectively provide:
- $3.3 million in payments to the participating states.
- 53 million eggs to be distributed through food banks and nonprofit organizations.
- New antitrust compliance programs.
- Restrictions prohibiting communications with competitors regarding pricing or bidding strategies.
The agreements also require additional compliance measures outlined by the Justice Department and participating states.
Companies deny wrongdoing
The companies maintain they did not violate the law.
Cal-Maine Foods called the allegations “baseless” and said the settlement allows the company to focus on serving customers.
“This settlement agreement enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide,” Cal-Maine CEO Sherman Miller said.
Versova said wholesale egg prices were heavily influenced by the cost of feed and the effects of the nationwide avian influenza outbreak, while Hickman’s parent company, Mantiqueira USA, noted the alleged conduct occurred before it acquired the company in late 2025.
Egg prices reached record highs
Average U.S. egg prices climbed to a record of approximately $6.23 per dozen in March 2025 during widespread outbreaks of highly pathogenic avian influenza that forced producers to cull millions of egg-laying hens.
Federal officials noted that wholesale price quotations declined after the companies were notified of the Justice Department’s investigation in March 2025. Consumer egg prices later fell to less than $2.20 per dozen by May 2026 as poultry flocks recovered.
Some consumer advocacy organizations argued the proposed settlements do not go far enough to hold the companies accountable.
The Takeaway
- The U.S. Justice Department and 17 states have reached proposed settlements with Cal-Maine Foods, Versova and Hickman’s Egg Ranch over allegations they coordinated egg pricing between 2022 and 2025.
- The companies will collectively pay $3.3 million, donate 53 million eggs to food banks and nonprofits, and implement antitrust compliance measures while denying any wrongdoing.
- The settlements remain subject to court approval as federal and state officials continue efforts to address alleged anti-competitive practices in the egg industry.
Next steps
The proposed settlement agreements must be approved by a federal court before taking effect. If approved, the companies will begin distributing eggs to nonprofit organizations, make the required payments to participating states, and implement the compliance measures required under the agreements.
