DOJ Settles With Top Egg Producers Over Price Manipulation Claims

The U.S. Department of Justice, in coordination with attorneys general from 17 states, has reached proposed settlements with three of the nation’s largest egg producers — Cal-Maine Foods, Versova Holdings/Centrum Valley, and Hickman’s Egg Ranch — resolving allegations that they coordinated to manipulate a key pricing benchmark and artificially inflate egg prices for consumers nationwide. The companies will pay a combined $3.3 million and donate approximately 53 million eggs to food banks and nonprofit organizations.

Background and Allegations

The proposed settlements, filed in the U.S. District Court for the Northern District of Iowa, stem from an investigation that uncovered what the Justice Department described as a coordinated scheme to manipulate daily price quotations published by Urner Barry, a market reporting company whose benchmark influences wholesale egg prices across the country.

According to the complaint, from approximately June 2022 to March 2025, the companies engaged in a variety of tactics to artificially inflate Urner Barry’s price quotations. These included submitting a large number of bids to signal strong demand, having multiple defendants bid simultaneously to create the appearance of a diverse market, submitting bids in the hours leading up to publication, placing bids unlikely to result in actual trades, and executing trades at premium prices.

Associate Attorney General Stanley Woodward emphasized the significance of the case, stating: “No product more quintessentially represents affordability than the price Americans pay for eggs. These actions prove this Department’s continued commitment to protecting competition and providing real relief for everyday Americans’ pocketbooks.”

The Hickman’s Email

A particularly striking piece of evidence emerged during the investigation. In December 2022, Hickman’s CEO sent an email to executives at Versova and Cal-Maine urging them to submit “strong bids, early and often” to push prices higher. All three companies subsequently submitted dozens of bids at elevated prices, which led Urner Barry to increase its price quotes.

New York Attorney General Letitia James, who co-led the investigation, said: “When powerful corporations collude behind the scenes to raise prices, working families suffer the costs. These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.”

Settlement Terms

Under the proposed settlements, which require court approval under the Tunney Act following a 60-day public comment period, the companies agreed to the following:

• Cal-Maine Foods: $1.5 million payment and donation of 30 million eggs
• Versova Holdings/Centrum Valley: $800,000 payment and donation of 20 million eggs
• Hickman’s Egg Ranch: $1 million payment and donation of 3.25 million eggs

The settlements also require the companies to adopt antitrust compliance programs, appoint compliance officers, and prohibit future coordination with competitors on bidding strategies and pricing.

None of the companies admitted wrongdoing. Cal-Maine CEO Sherman Miller stated that the allegations were “baseless” and that the settlement “enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs.” Versova pointed to bird flu and grain feed costs as factors influencing prices, while Hickman’s owner Mantiqueira USA noted the alleged conduct predated its acquisition.

Consumer Impact and Price Trends

The alleged manipulation coincided with a period of record-high egg prices for American consumers. Average U.S. egg prices soared to approximately $6.23 per dozen in March 2025 amid a highly pathogenic avian influenza (bird flu) epidemic that forced farmers to slaughter millions of egg-laying chickens.

According to the Associated Press, price quotations “dropped significantly” after the companies learned of the DOJ investigation in March 2025 and were instructed to preserve documents. Consumer prices subsequently fell to under $2.20 per dozen by May 2026 as flocks were replenished.

Criticism of the Settlement

While the settlement was welcomed by state officials, some advocacy groups argue it falls short of meaningful accountability. Cal-Maine reported a profit of $1.22 billion for the 2025 fiscal year, yet its settlement payment of $1.5 million represents roughly 0.12% of that figure.

Angela Huffman, president of Farm Action, criticized the outcome: “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.”

What’s Next

The proposed settlements now enter a 60-day public comment period as required by the Tunney Act. Following that, the U.S. District Court for the Northern District of Iowa must determine whether the settlements are in the public interest before they can take effect.

The 53 million donated eggs will be distributed to food banks and nonprofit organizations across the 17 participating states: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

Vermont Attorney General Charity Clark summed up the broader significance: “While consumers struggled to afford rising costs of basic groceries, the largest egg producers in the country were colluding to artificially inflate prices. They rigged the system and took money out of Vermonters’ pockets.”

The case serves as a reminder of the DOJ’s ongoing focus on anticompetitive practices in the agricultural sector and the impact that corporate coordination can have on the price of everyday essentials.