Producers to donate 53 million eggs

The U.S. Justice Department and 17 state attorneys general said on June 30 that three major egg producers agreed to donate 53 million eggs to food banks and pay $3.3 million to states to settle civil antitrust claims. The companies are Cal-Maine Foods, Hickman’s Egg Ranch and the Versova companies, according to the Justice Department and state attorneys general. Federal and state officials said the case centers on alleged coordination to influence benchmark daily egg price quotations used across the industry. The complaint and proposed settlements were filed in federal court on June 29, the Justice Department said. The government alleged the companies coordinated from June 2022 through March 2025 to manipulate daily egg price quotations published by Urner Barry, a pricing service used as a benchmark in egg supply contracts. ### Which companies are in the settlement? (justice.gov) Cal-Maine Foods, Versova and Hickman’s Egg Ranch are the three producers named in the proposed settlements, according to the Justice Department. The case caption on the department’s antitrust page lists Cal-Maine Foods Inc., Hickman’s Egg Ranch Inc., Versova Holdings LLC and Versova Management Cooperative. (justice.gov) June 30 press releases from California and other participating states described the companies as among the nation’s largest egg producers. The states said the settlement resolves allegations that the companies joined an illegal conspiracy that raised egg costs for consumers and businesses. ### What did prosecutors say the companies did? (justice.gov) The Justice Department said the producers engaged in “coordinated benchmark manipulation” that artificially inflated egg prices across the country. The complaint alleges the companies coordinated bids on the Egg Clearinghouse Inc. platform to affect Urner Barry’s daily quoted prices, which are widely used in contracts. (oag.ca.gov) The alleged conduct ran from about June 2022 to March 2025, according to the complaint and state announcements. Reuters reported on June 29 that the settlement followed a federal and multistate investigation into alleged manipulation of egg prices. ### What does the settlement require besides the egg donations? The $3.3 million payment will go to the participating states, and the companies also agreed to change business practices to prevent future violations, according to the Justice Department and multiple state attorneys general. (justice.gov) The proposed consent judgments would bar the companies from engaging in the alleged conduct going forward. (justice.gov) California Attorney General Rob Bonta said on June 30 that donations would be distributed over “the coming months and years” because of the volume involved. New York Attorney General Letitia James’s office said New York’s share is 4,968,000 eggs, while California said its food banks are slated to receive 8.9 million eggs. (oag.ca.gov) ### Which states joined the case? The Justice Department’s case page lists 17 states: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin. State press releases described the coalition as bipartisan. Texas Attorney General Ken Paxton’s office said Texas food banks are set to receive more than 7 million eggs under the settlement. (oag.ca.gov) Connecticut Attorney General William Tong’s office said the agreement resolved a joint federal-state investigation into what it called a long-running scheme to manipulate egg prices. ### What happens next in the case? June 29 court filings show the settlements were lodged as proposed consent judgments, which means they still must complete the federal approval process. (justice.gov) The Justice Department posted the complaint, stipulations and proposed final judgments on its antitrust case page. Egg deliveries to food banks are expected to begin on rolling schedules set by the participating states and nonprofit recipients. (ebs.publicnow.com) New York’s attorney general said distributions there will continue through October, while California said donations will continue over the coming months and years. (straitstimes.com) (justice.gov)