Three major U.S. egg producers have agreed to a proposed settlement totaling $3.3 million and the donation of 53 million eggs to resolve allegations of artificially inflating egg prices, according to the Department of Justice and New York Attorney General Letitia James. The companies—Cal-Maine Foods, Versova, and Hickman’s Egg Ranch—are accused of secretly communicating to manipulate the daily egg price index between June 2022 and March 2025, a period marked by rising grocery costs for consumers.
A bipartisan investigation led by the Justice Department and New York Attorney General’s office revealed that the top egg producers allegedly colluded to inflate prices. Prosecutors stated that an email from a Hickman’s CEO in December 2022 urged executives from Versova and Cal-Maine to submit “strong bids, early and often” to increase the cost of eggs. The DOJ’s complaint detailed the use of “spoofing-like tactics,” where traders place and then cancel buy or sell orders to influence prices, a practice that occurred while egg prices reached record highs.
During late 2022, Midwest large egg prices reportedly climbed to $5.36 per dozen, partly due to a bird flu epidemic. Prices continued to increase through additional outbreaks in 2024 and 2025, which significantly reduced the hen population. By January 2025, restaurant owners faced challenges as the average price for a dozen eggs neared $9, a 70% increase from the previous year. Reports indicated that some New York City bodegas began selling individual eggs due to the soaring costs and shortages.
The proposed settlement requires the three companies to cease price-manipulation tactics, implement compliance measures, and cooperate with state oversight. The agreement must be approved by a federal judge. Attorneys general from New York, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, and Vermont were involved in securing the settlement.
Cal-Maine Foods, the largest U.S. egg producer, stated that it denies all wrongdoing and believes its conduct was lawful. Versova also denied wrongdoing. Hickman’s Egg Ranch, now owned by JBS and Mantiqueira, claimed the alleged misconduct occurred before its acquisition of the company in late 2025.
Approximately 4.9 million of the donated eggs will be distributed to food banks and organizations serving New Yorkers.