The Justice Department said Tuesday that it and 17 state attorneys general had filed proposed settlements with three major egg producers that would bar them from coordinating bids in a way the government says artificially inflated egg prices across the country.
In the civil antitrust case, the government alleges that Cal-Maine Foods, Hickman's Egg Ranch, and Versova-related entities coordinated their bidding activity tied to Urner Barry, a widely used egg-price reporting service whose daily quotations influence what grocery stores, restaurants, and other buyers pay for eggs.
Cal-Maine issued a statement overnight announcing that it had reached an agreement with the DOJ and state attorneys general. The company denied all wrongdoing and violations of law and said it "was not assessed any fines or penalties," but agreed to donate 30 million eggs and pay $1.5 million to participating states.
Cal-Maine stock changed little following the settlement news. Shares are up 0.83% in Tuesday trading, but remain 20% down from 12 months ago.
Egg prices surged in 2022 after bird flu depleted laying flocks. Prices eased in 2023, and climbed again in late 2024 as another outbreak tightened supplies heading into 2025. But the government alleges bird flu wasn't the whole story.
The DOJ alleged that large egg producers flooded the market-reporting system with high bids -- often right before Urner Barry set its daily egg-price benchmark -- that made egg demand look stronger and prices look higher than they really were.
Since many egg contracts are tied to that benchmark, a higher benchmark could let producers charge customers more. The government said egg-price quotations fell significantly after the companies learned of the Justice Department investigation in March 2025.
Under the proposed settlements, the companies wouldn't be allowed to talk with competitors about how or when they place bids, what prices they charge, how much supply or demand they see, or any transactions that could affect published egg-price benchmarks.
They would also have to put stronger antitrust safeguards in place. That includes creating compliance programs, naming officers responsible for antitrust compliance, keeping closer watch over meetings involving cooperatives or joint ventures, and reporting possible violations.
The settlement also requires the companies to donate 53 million eggs to food banks and nonprofits and pay $3.3 million to participating states. The settlements aren't final yet. A court still has to approve them after a 60-day period for public comments.
Write to Evie Liu at evie.liu@barrons.com
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June 30, 2026 15:07 ET (19:07 GMT)
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