Egg companies made $1.22 billion in profit off a $6 carton — now they’re buying their way out of a price-fixing case with 53 million donated eggs
The U.S. Justice Department and 17 states reached settlement agreements with three major egg producers this week to resolve allegations that the companies illegally colluded for years to raise prices, including when the cost soared to record highs last year.
The states and federal government accused Cal-Maine Foods, Versova and Hickman’s Egg Ranch of a behind-the-scenes arrangement to “artificially inflate the daily price quotations for eggs” between June 2022 and March 2025. In particular, their investigation found that the companies coordinated on what bids they would submit to Urner Barry Publications, a company that runs an index key to determining how much grocery stores, restaurants and others pay for billions of eggs each year.
In turn, that meant “higher prices for eggs sold to consumers,” alleged the complaint, which was filed in Iowa on Monday, the day the settlement terms were announced.
“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” New York Attorney General Letitia James, who helped lead the investigation, said in a statement. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.”
None of the companies admitted wrongdoing under the settlements. But to settle the states’ claims, Cal-Maine, Versova and Hickman’s will collectively be on the hook for $3.3 million and 53 million eggs, James and others said. Those eggs would be donated by the companies and make their ways to food banks and nonprofits. The money will be distributed to the states.
The Justice Department and the states also outlined actions the companies will need to take, including adopting antitrust compliance programs and banning communicating with competitors on pricing and bidding strategies.
The settlements would still need court approval. The Justice Department’s Omeed A. Assefi said Tuesday that the proposed settlements “resolve years of conduct that dragged on Americans’ finances and their everyday lives.”
Average U.S. egg prices soared to a record high of about $6.23 per dozen in March 2025, amid a bird flu epidemic that forced farmers to slaughter millions of egg-laying chickens. Egg producers blamed price spike on the outbreak, but critics accused big companies of taking advantage of their market dominance and the government began its investigation.
Monday’s complaint notes that price quotations “dropped significantly” after Cal-Maine, Versova and Hickman’s learned of the Justice Department’s investigation and were instructed to preserve documents in March 2025. Consumer egg prices also later tumbled — to under $2.20 per dozen as of May 2026 — as replenished flocks caught up despite the ongoing outbreak.
Cal-Maine maintained Monday that allegations of price manipulation were “baseless” and that it believes its conduct has been legal. It also noted that while it was part of a cooperative with the other egg producers, it left the group in May 2024.
Still, Cal-Maine CEO Sherman Miller said the company’s settlement agreement “enables us to move forward so we can devote our full attention to what matters most: delivering affordable, high-quality eggs and egg-based prepared foods to consumers nationwide.”
Miller added the period the Justice Department reviewed “was a particularly challenging time” — noting that, beyond avian flu, the COVID-19 pandemic, weather and other market conditions have contributed to temporary supply shocks and high prices in recent years. He said Cal-Maine “took numerous steps to protect and grow its hen flock” in that time.
Versova echoed a similar sentiment, particularly pointing to the toll the bird flu has had on its farmers, who it noted “don’t set the wholesale price of eggs.” Instead, Versova said the price of most of its eggs depends on cost fluctuations of grain used in hen feeds.
Meanwhile, Hickman’s owner Mantiqueira USA, which acquired the egg producer in November, said the “conduct referenced in the complaint predates our acquisition,” noting that it is committed to complying with the law.
Some advocacy groups say the proposed settlements aren’t enough.
“Consumers paid record prices while dominant egg producers reported extraordinary profits, yet the result is another settlement that corporations can treat as the cost of doing business rather than meaningful accountability,” said Angela Huffman, president of Farm Action.
Cal-Maine — the only of the three companies that is public and reports quarterly financials — reported a profit of $1.22 billion for the 2025 fiscal year. Under its settlement agreement with the states, the company would pay $1.5 million and donate 30 million eggs.
Meanwhile, per court documents, Versova would provide 20 million eggs and $800,000, and Hickman’s would be on the hook for 3.25 million eggs and $1 million.
In addition to New York, these states were party to the settlement agreements: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
This story was originally featured on Fortune.com
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