Egg producers settle with Justice Department over price inflation probe

The Justice Department and 17 state attorneys general have reached $3.3 million settlements with three of the nation’s largest egg producers for alleged price-fixing that “artificially inflated” egg prices for consumers and retailers, federal and state officials announced Monday.

Egg producers Calmaine Foods, Versova, and Hickman’s Egg Ranch also agreed to donate approximately 53 million eggs to food banks and related nonprofit organizations as part of the settlement.

Based on the current average price for 12 large Grade A eggs (about $2.19 per dozen), these eggs could be worth about $9.7 million at the retail level.

Citing an investigation into egg price rigging that began more than a year ago, the Justice Department and a coalition of states alleged that the companies “illegally adjusted” the daily egg price index over a period of about three years to inflate it.

The collusion allegations come as American consumers are demanding more affordable prices and inflation is rising at its fastest pace in more than three years.

Egg prices have become a symbol of some kind of high inflation in the aftermath of the coronavirus pandemic.

For example, in February 2023, the average retail price of 12 large Grade A eggs jumped 150% from a year earlier, the largest annual change ever, according to data from the Bureau of Labor Statistics.

At the time, economists primarily pointed to the historic and deadly outbreak of avian influenza, which killed millions of laying hens and strained egg supplies.

In a separate company statement, Calmain and Versova denied any wrongdoing and pointed to bird flu, not collusion, as the main factor behind the soaring egg prices.

Mantiqueira USA, which owns Hickman’s, said in a written statement that the conduct cited in the complaint predates its acquisition of Hickman’s in November and that it is “committed to complying with all applicable laws and regulations and conducting its business with the highest standards of integrity.”

The Justice Department and a multi-state coalition alleged that Karmaine, Versova and Hickman had “secret communications” from approximately June 2022 to March 2025 to influence daily egg price quotes published by Arner Barry. New York Attorney General Letitia James said the company “extensively uses egg price benchmarks in its egg supply contracts.”

New York was among the 17 states that were party to the lawsuit.

The others were Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

The settlement still requires approval by a federal judge, but Calmain, Versova and Hickman’s will deter future “concerted” egg price manipulation through measures such as implementing antitrust compliance programs and appointing antitrust compliance officers, the Justice Department announced Tuesday.

“Food affordability is a top priority for the Antitrust Division,” said Omeed Assefi, former assistant attorney general in the Department of Justice’s Antitrust Division. “These settlements resolve years of conduct that have impacted Americans’ finances and daily lives.

Calmain said in a written statement that it denied any wrongdoing or violation of the law. It also said: “Such claims are unfounded and we continue to believe that the company’s actions were lawful, appropriate and in the best interest of supplying eggs to the market.”

Versova said in an emailed statement that the decision to accept the settlement “simply reflects our firm intention to put this matter aside and focus on our business.”

Calmain agreed to pay $1.5 million to resolve the coalition’s civil claims. Hickman agreed to pay $1 million and Versova $800,000.

Karmaine and Versova pointed to repeated outbreaks of bird flu in recent years as the main reason for soaring egg prices.

“The period under review by the Department of Justice has been a particularly difficult time,” Sherman Miller, president and CEO of Cal Maine Foods, said in a written statement. “Temporary supply shocks related to multiple outbreaks of avian influenza, the COVID-19 pandemic, weather, and other market forces (exacerbated by high inflation at the time) have periodically driven egg prices higher over the past five years.”

The Justice Department said Tuesday that egg prices had fallen “significantly” from their peak after the defendants learned of the investigation in March 2025.

Versova also said that most of the company’s eggs are sold on “grain-based contracts,” meaning the price customers pay “varies based on the cost of the grain that goes into the chicken feed.”