The alleged scheme came as the U.S. grappled with widespread avian flu outbreaks that had already tightened egg supplies and sent prices soaring.
Three of the nation's largest egg producers have agreed to pay $3.3 million and donate 53 million eggs after federal and state officials accused them of conspiring to artificially drive up egg prices while Americans struggled with sky-high grocery bills, per The New York Post.
The settlement, announced Tuesday by the U.S. Department of Justice and attorneys general from 17 states, resolves allegations that Cal-Maine Foods, Versova and Hickman's Egg Ranch manipulated benchmark egg prices between June 2022 and March 2025 by coordinating bids used to set industry prices. The alleged scheme came as the U.S. grappled with widespread avian flu outbreaks that had already tightened egg supplies and sent prices soaring.
Authorities claim the companies worked together to create the appearance of stronger demand, allowing them to charge customers more for eggs at a time when consumers were already feeling the effects of inflation. Egg prices peaked at more than $9 per dozen in some areas before later falling.
Under the proposed agreements, the companies will collectively pay $3.3 million to participating states and donate 53 million eggs to food banks and nonprofit organizations. Nearly 5 million eggs are expected to be distributed to food banks across New York. The settlement also requires the companies to implement antitrust compliance programs designed to prevent coordination with competitors on pricing.
The companies did not admit wrongdoing. Cal-Maine and Versova denied the allegations, while Hickman's said the conduct at issue occurred before the company changed ownership in 2025. The settlement still requires approval from a federal court before it becomes final. The attorneys general in New York, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, and Vermont all worked to secure the settlement.
“We are pleased that this agreement enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide, while helping ensure a reliable domestic supply of a nutritious, everyday staple that families depend on,” Sherman Miller, president and CEO of Cal-Maine Foods, added in a statement.
Officials said the case serves as a warning to companies that engage in price manipulation involving essential goods, particularly during times when consumers are struggling with high costs.
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