Three Major Egg Producers Settle Price-Fixing Investigation for $3.3 Million Plus 50 Million Eggs

Multistate Coalition Secures Settlement Following Years-Long Investigation

A multistate investigation has concluded with a major settlement against three of the country’s largest egg producers accused of coordinating to artificially inflate prices. Cal-Maine Foods, Hickman’s Egg Ranch, and Versova, which manages Centrum Valley Farms, agreed to provide more than 50 million eggs and pay $3.3 million to resolve allegations of price manipulation. The Wisconsin Department of Justice, attorneys general from 16 other states, and the U.S. Department of Justice announced the agreement this week.

The coalition’s investigation found that the three companies communicated with each other for years to influence a daily price index for eggs. This coordination allegedly drove up prices for retailers and consumers across the country. The donated eggs will be distributed to food banks and nonprofit organizations in participating states at the producers’ expense, providing immediate relief to communities struggling with elevated grocery costs.

Wisconsin will receive approximately two million eggs for food banks and community organizations serving the state. New York will receive about 4.9 million eggs under the settlement terms. The remaining donated eggs will be distributed among the other participating states based on the agreement’s allocation formula.

Evidence of Coordination Between Competitors

From mid-2022 to early 2025, the egg producers communicated with each other to coordinate bidding activity on a widely used pricing service, according to a complaint filed in federal court in Iowa. The investigation revealed that executives for the companies called and texted each other in efforts to push prices higher. These communications focused on influencing quotes published by Urner Barry, a benchmark pricing service widely used in egg supply contracts.

In one example cited by New York Attorney General Letitia James‘ office, Hickman’s CEO emailed executives at Versova and Cal-Maine in December 2022 urging them to submit “strong bids, early and often” to push prices higher. All three companies then submitted higher bids, leading Urner Barry to increase its price quotes. This pattern repeated multiple times throughout the investigation period, according to state authorities.

The alleged coordination artificially inflated prices paid by retailers and consumers across the country during a period when many families already faced significant economic challenges. State investigators compiled extensive evidence of communications between company executives that demonstrated a pattern of coordinated activity designed to manipulate the benchmark pricing index.

State and Federal Response to Market Manipulation

“Companies must not make goods less affordable through improper price manipulation,” Wisconsin Attorney General Josh Kaul stated. “There must be accountability for that kind of conduct.”

Kaul told WPR that the investigation aimed to ensure fair competition in the marketplace. Families across multiple states continue facing cost of living challenges, particularly with essential grocery items like eggs. The coordinated effort involved multiple state attorneys general and federal authorities working together to document the alleged price coordination and negotiate settlement terms with the three companies.

Attorney General Letitia James emphasized the impact on working families in her statement about the settlement.

“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” James said. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses. By shutting this scheme down and delivering millions of eggs to those in need, we’re sending a clear message that companies will not get away with illegal price hikes in New York.”

Settlement Terms and Compliance Requirements

Under the settlement, the three companies must immediately end their price coordination activities and adopt comprehensive compliance measures. They must cooperate with ongoing oversight by the participating states and federal authorities. The companies are not required to admit liability for the alleged price coordination under the settlement. However, they face strict monitoring and reporting requirements going forward.

The compliance framework requires each company to designate antitrust compliance officers who will monitor for potential violations. These officers must report any concerns to both state attorneys general and the Department of Justice. The compliance measures establish clear expectations for corporate behavior while providing regulators with tools to detect violations. Authorities can now address potential problems before they significantly impact consumer prices.

Cal-Maine Foods denied wrongdoing in the case, while the other two companies did not immediately respond to requests for comment. The settlement allows the companies to avoid protracted litigation while addressing the coalition’s concerns about anticompetitive behavior in the egg production industry.

Relief for Food Banks and Communities

The donated eggs will be provided at the companies’ expense to food banks and nonprofit organizations across participating states. All donated eggs must meet established food safety and regulatory standards before distribution. This requirement ensures that recipients receive products of appropriate quality and freshness for consumption.

Kaul noted that the settlement achieves multiple objectives for participating states. The investigation secured accountability through financial penalties. It also provides immediate assistance to families in need through the substantial egg donation. The compliance measures aim to prevent similar conduct in the future by establishing clear oversight mechanisms and reporting requirements.

“This was an effort that involved multiple states and the federal government, and we have gotten accountability here,” Kaul explained. “There’s both penalties that will be paid as a result of this, but also there are going to be a large number of eggs provided to folks to help, particularly, those who are in need.”

Implications for Market Competition

The settlement addresses concerns about fair competition in the marketplace. It provides immediate relief to communities through the donation of eggs to food banks and nonprofit organizations across 17 states. The agreement demonstrates how coordination between multiple jurisdictions can produce meaningful results when addressing alleged anticompetitive behavior by major corporations.

The investigation and resulting agreement show how state and federal authorities work together to hold major corporations accountable. When alleged anticompetitive behavior threatens to artificially inflate consumer costs for essential products, coordinated enforcement action can achieve significant results. The settlement serves as a warning to other companies that price coordination schemes will face serious consequences from regulators at multiple levels of government.