Egg Producers Settle Price-Fixing Case for $3.3M
The U.S. Department of Justice and 17 state attorneys general announced proposed settlements Tuesday with three of the nation's largest egg producers, resolving allegations that the companies coordinated to manipulate a key pricing benchmark and inflate egg prices for consumers.
Under the deals, Cal-Maine Foods, Versova and Hickman's Egg Ranch would pay a combined $3.3 million to participating states and donate about 53 million eggs to food banks and nonprofit organizations. Cal-Maine agreed to pay $1.5 million, Hickman's $1 million and Versova $800,000, according to CNBC.
Federal officials simultaneously filed a civil antitrust complaint. The proposed settlements must still be approved by a federal court and are subject to a 60-day public comment period required under the Tunney Act, Fox Business reported.
What the complaint alleges
According to the complaint, the companies "secretly communicated" from about June 2022 to March 2025 to influence the daily egg price quotations published by Urner Barry, a market reporting company whose benchmark is widely used in egg supply contracts. Prosecutors say the producers coordinated bidding to create the appearance of stronger demand, artificially inflating prices for the billions of eggs sold each year in violation of the Sherman Antitrust Act.
North Carolina Attorney General Jeff Jackson, one of the participating officials, described a specific episode. In December 2022, his office said, Hickman's CEO emailed Versova and Cal-Maine executives urging them to submit "strong bids, early and often" to push the benchmark higher, according to NC Newsline. Prosecutors say benchmark prices fell significantly after the companies learned of the investigation in March 2025.
Associate Attorney General Stanley Woodward framed the case around household costs. "No product more quintessentially represents affordability than the price Americans pay for eggs," he said in a statement. Jackson said the deal ensures the producers "can't rig the market anymore" and will send millions of eggs to food banks in his state.
Producers deny wrongdoing
The three companies denied breaking the law. Cal-Maine, which bills itself as the nation's largest egg producer, called the allegations "baseless" and noted it "was not assessed any fines or penalties" under the agreement. Versova said it was "pleased the U.S. Department of Justice investigation has been resolved without any finding of or admission of wrongdoing," and pointed to bird flu and grain-based contracts as the drivers of price swings.
Mantiqueira USA, the joint venture that acquired Hickman's Egg Ranch in November 2025, said the conduct described in the complaint predated its acquisition. Reports differ on the exact number of states involved: CBS News described "more than a dozen states," while CNBC and Fox Business each reported 17 state attorneys general.
The settlements land after egg prices became a symbol of post-pandemic inflation. Prices hit record highs during an avian flu outbreak that killed millions of egg-laying hens. A dozen large Grade A eggs now averages about $2.19, down from $6.23 in March 2025, according to the Federal Reserve Bank of St. Louis. The case adds to a run of high-profile antitrust actions, including the Blackstone LivCor RealPage rent-fixing settlement, and reflects broader questions about the reach of federal antitrust law across industries.
Frequently Asked Questions
Which companies settled and how much will they pay?
Cal-Maine Foods, Versova and Hickman's Egg Ranch will pay a combined $3.3 million to participating states and donate about 53 million eggs to food banks and nonprofits.
What were the companies accused of doing?
Prosecutors allege the producers coordinated from June 2022 to March 2025 to manipulate the Urner Barry daily egg price benchmark, artificially inflating prices in violation of the Sherman Antitrust Act.
Is the settlement final?
No. The proposed settlements must be approved by a federal court and are subject to a 60-day public comment period under the Tunney Act.
Did the companies admit wrongdoing?
No. Cal-Maine called the claims "baseless," Versova cited bird flu and grain-based contracts, and Mantiqueira USA said the conduct predated its acquisition of Hickman's.
Sources
Reporting compiled from court records and the cited source outlets.