Egg Price-Fixing Settlements
DOJ and 17 States Sue Egg Producers Over Collusion, Proposing Settlements Worth Millions
Key Points
The settlement includes donating about 3.4 million eggs to Pennsylvania food banks as part of the nationwide 53-million-egg donation plan.
DOJ documents describe communications in which Cal-Maine executives urged bidding up and, in December 2023, encouraged posting strong bids early and often to influence Urner Barry’s price benchmark.
The proposed settlements require the three companies to donate 53 million eggs to food banks and nonprofits and pay about $3.3 million to participating states.
As part of the settlements, the companies must designate an antitrust compliance officer to monitor compliance and report violations to state authorities and the DOJ.
New ownership context is noted: Mantiqueira USA says the alleged conduct occurred before Hickman’s Egg Ranch’s acquisition by MTQ USA and before Hickman’s joined MTQ USA, adding timeline nuance to the case.
The U.S. Department of Justice and 17 state attorneys general sued three major egg producers on June 30, 2026, accusing them of secretly coordinating to drive up egg prices across the country from June 2022 to March 2025. PYMNTS reported that Cal-Maine Foods, Hickman's Egg Ranch, and Versova agreed to a proposed settlement requiring them to pay $3.3 million and donate 53 million eggs to food banks nationwide.
The scheme allegedly targeted Urner Barry, the industry's standard daily price benchmark. Internal messages show a former Cal-Maine CEO texting a Hickman's executive "Let it rip" in December 2024, after which both companies flooded the market with high-priced bids. Egg prices peaked at over $6.00 per dozen in early 2025 — and dropped sharply once investigators issued preservation orders in March 2025.
How Executives Gamed the Daily Egg Price Index
Urner Barry publishes daily price quotes that wholesale buyers use to set egg prices in contracts nationwide. The DOJ says the three producers exploited this system by submitting coordinated, high-priced bids — many of them never intended to close — timed before the daily quote was published. Newsmax reported that executives exchanged direct messages urging each other to bid "strong bids, early and often" to push the benchmark higher.
The effect was significant. Because retail contracts are tied directly to Urner Barry quotes, inflating the benchmark raised prices across the entire national market. After investigators issued document preservation notices on March 5, 2025, benchmark quotes dropped "significantly," according to KEYT — strong evidence, prosecutors say, that the coordination had been working.
Settlement Terms: Eggs, Cash, and Compliance Officers
Under the proposed agreement, Cal-Maine will pay $1.5 million and donate 30 million eggs. Hickman's will pay $1 million, and Versova will pay roughly $800,000. The Morning Call reported that Pennsylvania alone will receive 3.4 million eggs for local food banks. California gets the largest share — 8.9 million eggs — followed by Texas with 7 million and New York with 4.9 million.
The settlements also require each company to hire a dedicated antitrust compliance officer. That officer must monitor internal pricing discussions, report any violations to state authorities and the DOJ, and ensure no future coordination with rivals. The companies are also banned from sharing bid details or timing strategies with competitors. A federal court in the Northern District of Iowa must still approve the deal.
Companies Deny Wrongdoing, Blame Bird Flu and Inflation
Cal-Maine, the nation's largest egg producer, called the allegations "baseless." CEO Sherman Miller said price spikes were caused by "high inflation and supply shocks like avian influenza." The U.S. poultry industry lost roughly 200 million birds to Highly Pathogenic Avian Influenza between 2022 and 2025. The company agreed to settle, its statement said, to avoid prolonged litigation.
Hickman's Egg Ranch was acquired by Mantiqueira USA — a joint venture tied to meat giant JBS — in November 2025. The new owners were quick to distance themselves. Yahoo Finance noted that Mantiqueira USA stated the alleged conduct happened entirely before their acquisition and before Hickman's joined their group. Legal experts say the civil — not criminal — nature of the case likely allowed all three firms to settle without formally admitting guilt.
Broader Fallout: Class Actions Loom, Prices Already Down
Government officials framed the settlement as a win for working families. Associate Attorney General Stanley Woodward said, "No product more quintessentially represents affordability than the price Americans pay for eggs." California Attorney General Rob Bonta added that his office has "zero tolerance for bad eggs." New York AG Letitia James said, "When powerful corporations collude behind the scenes to raise prices, working families suffer."
The legal pressure may not stop here. Law firm Berger Montague, representing commercial buyers like Denny's franchises, said the DOJ settlement provides "prima facie" evidence — meaning a strong starting point — for private class-action lawsuits seeking billions in damages, according to the firm. Egg prices have already fallen sharply since the investigation went public, dropping from over $6.00 per dozen at their peak to around $2.19 per dozen by May 2026, per USDA data.
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