The US Justice Department and 17 states accused Cal-Maine Foods, Hickman's Egg Ranch, and Versova of colluding to inflate wholesale egg prices from June 2022 to March 2025. This alleged price manipulation involved coordinating bids on the Egg Clearinghouse, an online marketplace often called "The Wall Street of Eggs," to influence the Urner Barry price benchmark. These benchmarks are crucial as they often determine the prices grocery stores and restaurants pay for billions of eggs, ultimately impacting consumer costs.
Evidence of this alleged conspiracy includes text messages and emails between executives. For example, in December 2024, after a new wave of bird flu, Hickman's CEO reportedly received a text from Cal-Maine’s former CEO saying, “Let it rip.” Another instance in December 2022 saw the Hickman's CEO emailing senior executives at Cal-Maine and Versova, urging them to “bid like they vote in Chicago, early and often” and to “post strong bids, early and often.” Executives also allegedly lobbied Urner Barry in late 2024 for higher price quotations and less attention to other companies' lower bids. The complaint noted that price quotations dropped significantly after the federal investigation became public in March 2025.
The companies denied wrongdoing but agreed to settle civil claims. The proposed settlement, which requires court approval, includes a collective donation of 53 million eggs to food banks and a payment of $3.3 million to New York and other investigating states. Specifically, Cal-Maine will pay $1.5 million and donate 30 million eggs, Versova will provide $800,000 and 20 million eggs, and Hickman's will contribute $1 million and 3.25 million eggs. This settlement also mandates that the companies adopt antitrust compliance programs and cease communicating with competitors on pricing and bidding strategies. While the companies attributed soaring prices during this period to a historic avian flu outbreak that decimated hen populations, critics accused them of exploiting market dominance.
