The U.S. Justice Department is reportedly preparing to file an antitrust lawsuit against leading egg producers, including Cal-Maine Foods and Versova. The suit would allege that these companies coordinated pricing through an industry price-benchmarking service. This development follows a Wall Street Journal report published on April 17, 2026, which indicated the DOJ was nearing such a filing.
Cal-Maine Foods, the nation's biggest producer of chicken eggs, saw its stock drop by nearly 3% following the initial report. The company had previously stated it was cooperating with a Justice Department investigation into potential price-fixing by egg producers, after receiving a civil investigative demand. The ongoing investigation and potential litigation stem from a wave of class-action lawsuits accusing egg producers of price-fixing amidst a period of skyrocketing egg prices.
The cost of eggs had surged due to bird-flu outbreaks that decimated egg-laying hen populations, causing widespread supply shortages. However, critics of the egg producers allege that some companies took advantage of the situation by coordinating prices. The lawsuit claims that an information service, previously known as Urner Barry and now Expana, was used by producers to share pricing information and set benchmark prices, ostensibly for independent reference, but allegedly for collusion. While egg prices had reached a high of $6.23 a year prior, they had fallen to $2.35 by March, suggesting that any alleged collusion might have ceased or been mitigated.
Despite the impending lawsuit, the Justice Department and the egg producers could still reach a settlement to avoid litigation. This is not the first time major egg producers have faced price-fixing allegations, as previous instances of such coordination have occurred. The Justice Department is also separately investigating antitrust issues in the beef, fertilizer, and crop seeds markets, indicating a broader focus on combating high food costs and potential market manipulation.
For investors, the primary concern may extend beyond the lawsuit itself to the projected decline in Cal-Maine's profits. Net profits are forecast to fall from $1.2 billion last year to below $200 million over the next two years, regardless of the antitrust case's outcome. Flocks are rebuilding after the avian flu outbreaks, and egg prices have already decreased by 45% over the past year, which could further impact future profitability.
