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US Egg Producers Settle Price Manipulation Probe, Agree to Pay $3.3 Million and Donate 53 Million Eggs

US Egg Producers Settle Price Manipulation Probe, Agree to Pay $3.3 Million and Donate 53 Million Eggs. Source: Tony Webster from Portland, Oregon, United States, CC BY 2.0, via Wikimedia Commons

The U.S. Department of Justice and a coalition of 17 states have reached a settlement with three of the nation’s largest egg producers following an investigation into alleged egg price manipulation, according to the New York Attorney General’s Office.

Under the agreement, Cal-Maine Foods, Versova, and Hickman’s Egg Ranch will collectively pay $3.3 million to participating states and donate 53 million eggs to food banks and nonprofit organizations serving communities across those states. The settlement also requires the companies to adopt compliance measures aimed at preventing future anti-competitive practices.

Cal-Maine Foods, the largest egg producer involved in the case, said it will contribute $1.5 million of the total settlement and donate 30 million eggs to food banks and charitable organizations nationwide. In a separate statement, the company denied any wrongdoing, emphasizing that the agreement does not include fines or penalties against the company. Cal-Maine added that it voluntarily agreed to implement enhanced compliance and reporting procedures as part of the settlement.

Versova and Hickman’s Egg Ranch did not immediately respond to requests for comment outside normal business hours.

According to New York Attorney General Letitia James’ office, investigators found that the three companies allegedly coordinated for years to influence a daily egg price index, resulting in artificially inflated egg prices that affected retailers and consumers across the United States.

As part of the settlement, the companies must cease any coordinated conduct related to egg pricing, strengthen internal compliance programs, and fully cooperate with ongoing oversight by the participating states. The agreement is intended to promote fair competition in the egg market while helping provide millions of donated eggs to food banks and nonprofit organizations supporting families in need.

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