Key facts
- Three major egg producers, Cal-Maine Foods, Versova, and Hickman’s Egg Ranch, have reached settlement agreements.
- The companies are accused of colluding to artificially inflate egg prices between June 2022 and March 2025.
- The settlements require the companies to pay $3.3 million and donate 53 million eggs.
- The funds will be distributed to the states involved in the antitrust action.
- The settlements are subject to court approval and include requirements for antitrust compliance programs.
The U.S. Justice Department and 17 states have reached settlement agreements with three major egg producers, Cal-Maine Foods, Versova, and Hickman’s Egg Ranch, to resolve allegations of illegal price collusion. The companies are accused of a behind-the-scenes arrangement to artificially inflate egg prices between June 2022 and March 2025, impacting consumers and businesses.
Under the proposed settlements, which still require court approval, the companies will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofits. The money will be distributed to the states, and the eggs will be donated by the companies. The Justice Department and states also mandated that the companies adopt antitrust compliance programs and cease communicating with competitors on pricing and bidding strategies.
Critics, including New York Attorney General Letitia James, alleged that the producers manipulated the market for increased profit. The average U.S. egg price had reached a record high of about $6.23 per dozen in March 2025, partly attributed by producers to a bird flu epidemic. However, investigations found that price quotations dropped significantly after the companies became aware of the Justice Department's inquiry in March 2025, and consumer prices later fell substantially.
None of the companies admitted wrongdoing. Cal-Maine Foods maintained that the allegations were baseless and that its conduct was legal, noting it left a cooperative with the other producers in May 2024. CEO Sherman Miller stated the settlement allows the company to focus on delivering affordable eggs and acknowledged challenging market conditions like avian flu, the COVID-19 pandemic, and weather. Versova echoed sentiments regarding the impact of bird flu on farmers and noted that egg prices are largely influenced by grain feed costs.