Egg producers settle price-fixing claims with cash and donated eggs
The Justice Department and 17 states say three egg producers colluded on pricing; the companies deny wrongdoing under proposed settlements.
By Hana Yoshida · Markets Reporter
3 min read
The Justice Department and 17 states have reached proposed settlements with Cal-Maine Foods, Versova and Hickman’s Egg Ranch over allegations that the egg producers coordinated to raise prices. The case matters because regulators tied the alleged conduct to higher egg costs during a period when consumers were already paying record prices.
According to a complaint filed Monday in Iowa, federal and state officials accused the companies of working together from June 2022 through March 2025 to influence daily egg price quotations. Regulators said those quotations helped set what grocery stores, restaurants and other buyers paid for billions of eggs each year.
The complaint said the companies coordinated bids submitted to Urner Barry Publications, which runs a widely used egg-pricing index. Regulators alleged that the conduct led to higher prices paid by consumers.
New York Attorney General Letitia James, whose office helped lead the multistate investigation, said in a statement that the companies manipulated the market and increased costs for families and businesses. The Justice Department’s Omeed A. Assefi said Tuesday that the proposed settlements would resolve years of conduct that affected Americans’ finances and daily lives.
The companies did not admit wrongdoing in the settlements. The agreements still require court approval.
What the settlements require
Under the proposed deals, Cal-Maine, Versova and Hickman’s would collectively pay $3.3 million and donate 53 million eggs, according to James and other officials. The donated eggs would go to food banks and nonprofits, while the money would be distributed among the states.
- Cal-Maine would pay $1.5 million and donate 30 million eggs.
- Versova would pay $800,000 and donate 20 million eggs, according to court documents.
- Hickman’s would pay $1 million and donate 3.25 million eggs, according to court documents.
The Justice Department and the states also said the companies must adopt antitrust compliance programs. The agreements would bar communications with competitors about pricing and bidding strategies.
The states participating in the settlement are Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin.
Egg prices and company responses
Average U.S. egg prices reached about $6.23 per dozen in March 2025, according to figures cited by the Associated Press, as a bird flu outbreak forced farmers to kill millions of egg-laying hens. Egg companies attributed the spike to the outbreak, while critics said large producers used their market power to benefit from tight supply.
The complaint said egg price quotations fell significantly after Cal-Maine, Versova and Hickman’s learned of the Justice Department investigation and received document-preservation instructions in March 2025. The Associated Press reported that consumer egg prices later dropped below $2.20 per dozen by May 2026 as flocks were replenished, even as the bird flu outbreak continued.
Cal-Maine said Monday that the allegations were baseless and that it believes its conduct was lawful. The company said it had belonged to a cooperative with the other producers but left in May 2024.
Cal-Maine CEO Sherman Miller said the settlement lets the company focus on selling affordable eggs and prepared foods nationwide. He also said the period examined by the Justice Department was difficult because avian flu, the COVID-19 pandemic, weather and other market conditions contributed to supply disruptions and higher prices.
Versova said bird flu had hurt its farmers and said they do not set the wholesale price of eggs. The company said prices for many of its eggs depend on changes in grain costs used for hen feed.
Mantiqueira USA, which acquired Hickman’s in November, said the conduct described in the complaint happened before its acquisition. The company said it is committed to legal compliance.
Farm Action President Angela Huffman criticized the settlements, saying consumers paid record prices while dominant producers posted strong profits and that the outcome could be treated as a cost of doing business. Cal-Maine, the only publicly traded company among the three, reported $1.22 billion in profit for fiscal 2025.
This story draws on original reporting from Fortune.