The U.S. Justice Department and 17 states have reached settlement agreements with three leading egg producers: Cal-Maine Foods, Versova, and Hickman's Egg Ranch. The settlement resolves allegations that these companies illegally colluded for years to artificially inflate egg prices, particularly between June 2022 and March 2025. The complaint, filed in Iowa, accused the companies of coordinating bids to Urner Barry Publications, a company whose index is crucial for determining egg prices paid by grocery stores and restaurants. This alleged coordination led to higher prices for consumers.
Under the terms of the settlement, which still requires court approval, the companies will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofits. Specifically, Cal-Maine will pay $1.5 million and donate 30 million eggs, Versova will contribute $800,000 and 20 million eggs, and Hickman's will pay $1 million and provide 3.25 million eggs. The money will be distributed to the states involved in the suit, including New York, Arizona, California, Florida, and Texas, among others. New York Attorney General Letitia James emphasized that coordinated efforts by powerful corporations led to working families suffering from higher costs.
The investigation revealed specific instances of alleged coordination, such as a December 2022 email from Hickman's CEO to Versova and Cal-Maine executives, urging them to submit "strong bids, early and often" to drive up prices. Following this, all three companies submitted numerous bids at higher prices, leading Urner Barry to increase its price quotes. After the Justice Department's investigation began in March 2025, price quotations reportedly dropped significantly, with consumer egg prices falling from a record high of about $6.23 per dozen in March 2025 to under $2.20 per dozen by May 2026.
While the companies did not admit wrongdoing, the settlements require them to adopt antitrust compliance programs and prohibit communication with competitors on pricing and bidding strategies. Cal-Maine, which reported a profit of $1.22 billion for its 2025 fiscal year, maintained that the allegations were "baseless" and that its conduct was legal. However, advocacy groups like Farm Action criticized the settlement, stating that it represents "the cost of doing business rather than meaningful accountability" for corporations that profited significantly while consumers paid record prices.
