The family that founded the United States' largest egg producer, Cal-Maine Foods, pocketed approximately $320 million from the sale of a portion of its controlling stake in the company. This transaction occurred just weeks after federal investigators launched a probe into allegations of a scheme to manipulate egg prices, a practice that reportedly drove up grocery costs for millions of consumers.
The Adams family, which had controlled the Mississippi-based company for nearly seven decades, divested their shares near the company's peak stock value. According to the Financial Times, Cal-Maine's shares roughly doubled between mid-2022 and early 2025, coinciding with surges in egg prices, company profits, and market valuation.
The sales took place after the Justice Department and 17 states initiated legal action, accusing Cal-Maine and rival egg producers of colluding on bids and trades for almost three years. Prosecutors allege this coordination was intended to artificially inflate a key benchmark price used for billions of eggs sold to supermarkets, restaurants, and food-service companies nationwide.
Company filings cited by the Financial Times indicate that the Adams family converted its super-voting shares into common stock in April 2025. Subsequently, they sold nearly 3 million shares through an offering managed by Goldman Sachs, with each share priced at $92.75. Cal-Maine also facilitated a repurchase of about $50 million worth of shares from family members.
Despite the sale, members of the family retained stock in the company. Adolphus “Dolph” Baker, the son-in-law of the late founder Fred Adams Jr., remained as chairman of the board.
The transactions followed Cal-Maine's disclosure in an April 2025 SEC filing that it had received a civil investigative demand from the Justice Department concerning a national antitrust investigation into egg prices. Federal prosecutors contend that the alleged price manipulation by Cal-Maine, Versova, and Hickman’s Egg Ranch spanned from June 2022 to March 2025. They claim executives coordinated bidding activity to influence daily egg price quotations published by Urner Barry, an industry-standard benchmark used in supply contracts.
Cal-Maine Foods has denied any wrongdoing, attributing price increases to factors such as avian flu and other market dynamics. The company is part of a proposed settlement, which is pending court approval and includes no admission of liability. Under the proposed terms, Cal-Maine, Versova, and Hickman’s would donate 53 million eggs to food banks, pay $3.3 million to participating states, and accept limitations on communications with competitors.
Prosecutors have pointed to a series of communications, including emails, text messages, and phone calls, as evidence of the alleged scheme. For instance, an exchange in October 2022 involved a Cal-Maine executive texting the CEO of Hickman's stating, “We are bidding up. Let’s hold it today.” Following a day where Urner Barry prices remained unchanged, another Cal-Maine executive reportedly responded, “No change.”
Two months later, the CEO of Hickman’s allegedly urged executives at Cal-Maine and Versova to submit strong bids “early and often.” Another executive reportedly remarked, “as a group we need to bid like they vote in Chicago, early and often,” according to the complaint.
Prosecutors further allege that executives sometimes submitted premium bids they did not intend to fulfill and arranged private trades above market prices to influence the benchmark. This alleged coordination reportedly continued into late 2024, when a former Cal-Maine CEO texted Hickman’s chief executive, “Let it rip,” as noted by prosecutors. The companies then reportedly increased both the number of premium bids submitted and the number left unfilled.
According to the Justice Department, benchmark prices saw a sharp decline after the companies became aware of the federal investigation in March 2025. The Post has sought comment from Cal-Maine Foods, Baker, the Adams family, Versova, Hickman’s Egg Ranch, the Justice Department, and the Securities and Exchange Commission. Goldman Sachs declined to comment.