The U.S. Justice Department and 17 states have reached settlement agreements with three major egg producers—Cal-Maine Foods, Versova, and Hickman’s Egg Ranch—to resolve allegations of a multiyear scheme to illegally fix prices. The companies will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofits.
Federal and state investigators accused the companies of coordinating their bids to Urner Barry Publications, an index crucial for determining egg prices paid by grocery stores and restaurants, between June 2022 and March 2025. This alleged collusion, the complaint filed in Iowa stated, resulted in artificially inflated daily price quotations and, consequently, higher prices for consumers.
New York Attorney General Letitia James, who co-led the investigation, stated that these producers manipulated the market for greater profit. "When powerful corporations collude behind the scenes to raise prices, working families suffer the costs," she said in a statement.
Under the terms of the settlements, which still require court approval, none of the companies admitted to any wrongdoing. In addition to the financial payments and egg donations, the producers must implement antitrust compliance programs and cease communications with competitors regarding pricing and bidding strategies. Omeed A. Assefi of the Justice Department noted that the proposed settlements address "years of conduct that dragged on Americans’ finances and their everyday lives."
Average U.S. egg prices reached a record high of approximately $6.23 per dozen in March 2025. While producers attributed the spike to a bird flu epidemic that led to the culling of millions of egg-laying chickens, critics suggested that major companies exploited their market dominance. The investigation was initiated following these accusations.
The complaint indicates that price quotations dropped significantly after Cal-Maine, Versova, and Hickman’s were alerted to the Justice Department's investigation in March 2025 and instructed to preserve documents. Consumer egg prices also declined to under $2.20 per dozen by May 2026 as flocks were replenished, despite the ongoing bird flu outbreak.
Cal-Maine Foods has maintained that the price manipulation allegations are "baseless" and asserted that its operations have been legal. The company, the only one of the three that is publicly traded, also noted it left a cooperative with the other producers in May 2024. Cal-Maine CEO Sherman Miller stated that the settlement will allow the company to focus on delivering eggs to consumers.
Versova echoed sentiments regarding the impact of bird flu on farmers, emphasizing that the wholesale price of eggs is not set by producers but is instead influenced by the fluctuating costs of grain used for hen feed. Hickman's owner, Mantiqueira USA, which acquired the producer in November, clarified that the conduct in question predated its acquisition and affirmed its commitment to legal compliance.
Some advocacy groups have criticized the settlements, arguing they do not go far enough. Angela Huffman, president of Farm Action, said the agreements may be viewed by corporations as merely a cost of doing business rather than significant accountability, especially given the record profits reported by dominant egg producers during the period of high prices.
Cal-Maine Foods reported a profit of $1.22 billion for its 2025 fiscal year. Under its settlement, Cal-Maine will pay $1.5 million and donate 30 million eggs. Versova is to provide 20 million eggs and $800,000, while Hickman’s will contribute 3.25 million eggs and $1 million.
The states involved in the settlement agreements, in addition to New York, include Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.