Egg producers to give 53 million eggs under U.S. settlement

The U.S. Justice Department and 17 state attorneys general said on June 29 that three major egg producers agreed to settle civil antitrust claims that they manipulated a key egg-pricing benchmark. Cal-Maine Foods, Versova and Hickman’s Egg Ranch agreed to donate 53 million eggs to food banks and community organizations and pay $3.3 million to the states under the proposed deal. (justice.gov) Federal and state enforcers alleged the companies coordinated bidding activity from June 2022 through March 2025 to influence daily egg price quotes published by Urner Barry, a benchmark used in egg supply contracts across the country. (ag.ny.gov) The case landed after egg prices became a national political and consumer issue during the 2024-2025 run-up in grocery costs. (openclassactions.com) The Justice Department said billions of eggs are sold each year at prices tied to Urner Barry quotations, meaning changes in that benchmark can flow through to retailers and consumers nationwide. CBS reported that average retail prices for a dozen large Grade A eggs had fallen to $2.19 from a March 2025 peak of $6.23, after a period when avian flu also hit supply. ### Which companies are in the settlement, and what are they accused of doing? Cal-Maine Foods, Versova and Hickman’s Egg Ranch were named by the Justice Department and the states as defendants in the civil complaint. (justice.gov) The complaint alleged the companies secretly communicated to coordinate bids in spot markets in ways that would make demand appear stronger and push benchmark quotations higher. New York Attorney General Letitia James said the investigation found the companies coordinated “behind the scenes” to influence the daily price index for eggs. Her office said the conduct centered on Urner Barry quotations that were widely used in contracts covering egg sales to retailers and other buyers. (justice.gov) ### How did the alleged scheme work? Urner Barry publishes daily egg price quotations that serve as a benchmark for wholesale transactions, according to the Justice Department’s complaint. Prosecutors said the producers agreed to submit large numbers of bids, to have multiple companies bid so the market appeared broader, and to place bids late in the trading day to affect the published quote. (justice.gov) New York’s complaint summary gave one example from December 2022, saying Hickman’s chief executive emailed executives at Versova and Cal-Maine urging them to submit “strong bids, early and often” to push prices higher. The state said all three companies then submitted dozens of higher-priced bids, after which Urner Barry raised its quoted prices. (ag.ny.gov) ### What does the settlement require besides the egg donation? The proposed settlement requires the companies to provide 53 million eggs at their own expense to food banks and nonprofit groups in participating states and to pay $3.3 million to the states. The companies also agreed to compliance measures, including antitrust compliance officers and oversight obligations intended to prevent future coordination, according to state and federal statements. (justice.gov) California Attorney General Rob Bonta said 8.9 million eggs would go to California food banks, while New York said about 4.9 million eggs would be delivered to organizations serving New Yorkers. California said deliveries would occur over the coming months and years because of the size of the donation. (ag.ny.gov) ### Did the companies admit wrongdoing? Cal-Maine said on June 29 that it had reached an agreement to resolve the claims after a 15-month investigation, but did not admit liability. Versova also said it was pleased the investigation had been resolved without any finding or admission of wrongdoing, according to CBS and company statements. Hickman’s new owner, Mantiqueira USA, said the conduct described in the complaint predated its November acquisition and that it was committed to compliance. (ag.ny.gov) Cal-Maine and Versova said avian flu and other supply disruptions, not collusion, were the main drivers of higher egg prices. Federal and state enforcers nonetheless said the settlement would stop the alleged coordination and add oversight. (oag.ca.gov) ### What happens next, and where will the eggs go? The proposed settlement still must be approved by the U.S. District Court for the Northern District of Iowa, where the case was filed on June 29. State attorneys general have already begun identifying allocations, with California, New York and other participating states announcing how many eggs their food banks are expected to receive. (openclassactions.com) (cnbc.com) (investors.calmainefoods.com)