States, US Reach Deal With Egg Producers in Cartel Pricing Probe

The U.S. Justice Department and a coalition of states have reached a settlement with egg producers over alleged illegal price coordination, according to New York’s attorney general.

Cal-Maine Foods Inc, Hickmans’s Egg Ranch Inc. and Versova will pay $3.3 million in civil penalties and donate more than 50 million eggs under terms of the agreement, according to a statement issued late Monday by the office of Letitia James, New York state’s top law enforcement official.

The producers must refrain from illegal coordination to manipulate prices, adopt compliance measures to prevent future antitrust violations and cooperate with oversight by the states, according to the statement.

The bipartisan investigation revealed that he companies had illegally coordinated for years to influence a daily price index for eggs, artificially increasing prices for consumers nationwide, James said.

Bloomberg previously reported that the Justice Department’s investigation focused on the use of Expana, an industry data service formerly known as Urner Barry, that benchmarks prices for the market.

The settlement requires court approval before it’s final.

“These massive egg producers rigged the system to jack up profits, and all of us paid for it,” Connecticut Attorney General William Tong said in a statement.

A spokesperson for DOJ didn’t immediately respond to requests for comment on the settlement.

The investigation, which kicked off a little over a year ago, followed record-breaking prices in early 2025, when the average price of a dozen eggs reached as high as $6.22. The price spike occurred as bird flu outbreaks forced farmers to slaughter millions of egg-laying hens. Prices have since fallen dramatically, hitting $2.19 per dozen in May, an almost 65% drop, according to U.S. Department of Agriculture data.

Top photo: Eggs for sale in Michigan. Photographer: Emily Elconin/Bloomberg.