Egg producers will pay $3.3M and donate 53 million eggs to settle price
fixing claims
[July 01, 2026] By
WYATTE GRANTHAM-PHILIPS
NEW YORK (AP) — The U.S. Justice Department and 17 states reached
settlement agreements with three major egg producers this week to
resolve allegations that the companies illegally colluded for years to
raise prices, including when the cost soared to record highs last year.
The states and federal government accused Cal-Maine Foods, Versova and
Hickman’s Egg Ranch of a behind-the-scenes arrangement to “artificially
inflate the daily price quotations for eggs" between June 2022 and March
2025. In particular, their investigation found that the companies
coordinated on what bids they would submit to Urner Barry Publications,
a company that runs an index key to determining how much grocery stores,
restaurants and others pay for billions of eggs each year.
In turn, that meant “higher prices for eggs sold to consumers,” alleged
the complaint, which was filed in Iowa on Monday, the day the settlement
terms were announced.
“When powerful corporations collude behind the scenes to raise prices,
working families suffer the costs,” New York Attorney General Letitia
James, who helped lead the investigation, said in a statement. “These
egg producers manipulated the market to squeeze even more profit out of
consumers and businesses."
None of the companies admitted wrongdoing under the settlements. But to
settle the states' claims, Cal-Maine, Versova and Hickman's will
collectively be on the hook for $3.3 million and 53 million eggs, James
and others said. Those eggs would be donated by the companies and make
their ways to food banks and nonprofits. The money will be distributed
to the states.
The Justice Department and the states also outlined actions the
companies will need to take, including adopting antitrust compliance
programs and banning communicating with competitors on pricing and
bidding strategies.
The settlements would still need court approval. The Justice
Department's Omeed A. Assefi said Tuesday that the proposed settlements
“resolve years of conduct that dragged on Americans’ finances and their
everyday lives.”
Average U.S. egg prices soared to a record high of about $6.23 per dozen
in March 2025, amid a bird flu epidemic that forced farmers to slaughter
millions of egg-laying chickens. Egg producers blamed price spike on the
outbreak, but critics accused big companies of taking advantage of their
market dominance and the government began its investigation.
Monday’s complaint notes that price quotations “dropped significantly”
after Cal-Maine, Versova and Hickman’s learned of the Justice
Department’s investigation and were instructed to preserve documents in
March 2025. Consumer egg prices also later tumbled — to under $2.20 per
dozen as of May 2026 — as replenished flocks caught up despite the
ongoing outbreak.
Cal-Maine maintained Monday that allegations of price manipulation were
“baseless” and that it believes its conduct has been legal. It also
noted that while it was part of a cooperative with the other egg
producers, it left the group in May 2024.
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Eggs are for sale at a grocery store Tuesday, Feb. 10, 2026, in
Chicago. (AP Photo/Erin Hooley,File)
 Still, Cal-Maine CEO Sherman Miller
said the company's settlement 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.”
Miller added the period the Justice Department reviewed “was a
particularly challenging time” — noting that, beyond avian flu, the
COVID-19 pandemic, weather and other market conditions have
contributed to temporary supply shocks and high prices in recent
years. He said Cal-Maine “took numerous steps to protect and grow
its hen flock” in that time.
Versova echoed a similar sentiment, particularly pointing to the
toll the bird flu has had on its farmers, who it noted “don’t set
the wholesale price of eggs.” Instead, Versova said the price of
most of its eggs depends on cost fluctuations of grain used in hen
feeds.
Meanwhile, Hickman's owner Mantiqueira USA, which acquired the egg
producer in November, said the “conduct referenced in the complaint
predates our acquisition," noting that it is committed to complying
with the law.
Some advocacy groups say the proposed settlements aren't enough.
“Consumers paid record prices while dominant egg producers reported
extraordinary profits, yet the result is another settlement that
corporations can treat as the cost of doing business rather than
meaningful accountability,” said Angela Huffman, president of Farm
Action.
Cal-Maine — the only of the three companies that is public and
reports quarterly financials — reported a profit of $1.22 billion
for the 2025 fiscal year. Under its settlement agreement with the
states, the company would pay $1.5 million and donate 30 million
eggs.
Meanwhile, per court documents, Versova would provide 20 million
eggs and $800,000, and Hickman's would be on the hook for 3.25
million eggs and $1 million.
In addition to New York, these states were party to the settlement
agreements: Arizona, California, Colorado, Connecticut, Florida,
Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio,
Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
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