The Justice Department and attorneys general from 17 states announced proposed settlements Tuesday with three of the nation’s largest egg producers after alleging they coordinated to manipulate a key pricing benchmark that inflated egg prices for consumers nationwide.
Federal officials simultaneously filed a civil antitrust lawsuit against Cal-Maine Foods, Hickman’s Egg Ranch and Versova while lodging the proposed settlements, which – if approved by a federal court – would prohibit the companies from engaging in the alleged conduct going forward.
According to New York Attorney General Letitia James’ office, the companies agreed to pay a combined $3.3 million to participating states and donate approximately 53 million eggs to food banks and nonprofit organizations. The settlements also require the companies to adopt antitrust compliance measures and end the alleged coordination.
HOW YOUTUBE TV AND DIRECTV STREAM SUBSCRIBERS CAN GET A PAYOUT FROM DISNEY’S $50M ANTITRUST SETTLEMENT
The Justice Department alleges the companies manipulated daily price quotations published by Urner Barry, an industry benchmark that influences wholesale egg prices nationwide.
According to the complaint, the companies coordinated bidding activity to create the appearance of stronger demand and artificially inflate prices for billions of eggs sold each year.
CALIFORNIA FOOD CHAINS MUST POST MENU ALLERGEN WARNINGS STARTING JULY 1
The complaint also alleges benchmark prices fell significantly after the companies learned of the federal investigation and were instructed to preserve documents in March 2025.
“No product more quintessentially represents affordability than the price Americans pay for eggs,” Associate Attorney General Stanley Woodward said in a statement. “These actions prove this Department’s continued commitment to protecting competition and providing real relief for everyday Americans’ pocketbooks.”
BELOVED GAS STATION PIZZA CHAIN CEO REVEALS 400-STORE EXPANSION PLAN AS FOOD BUSINESS BOOMS
Cal-Maine, the nation’s largest egg producer, denied wrongdoing in a statement, saying it “was not assessed any fines or penalties” under the agreement. The company said it will pay $1.5 million to participating states and donate 30 million eggs to food banks and nonprofit organizations while implementing certain compliance and reporting measures.
Mantiqueira USA, the joint venture that acquired Hickman’s Egg Ranch in November 2025, said the conduct described in the complaint occurred before its acquisition of the company.
“This settlement fully resolves the allegations against Hickman’s Egg Ranch related to that period,” the company said.
The proposed settlements remain subject to court approval following a 60-day public comment period required under the Tunney Act.
CLICK HERE TO GET FOX BUSINESS ON THE GO
FOX Business reached out to Cal-Maine Foods, Hickman’s Egg Ranch and Versova for additional comment.
Reuters contributed to this report.
Read the full article here