NEW YORK (AP) — The U.S. Justice Department and 17 states have reached settlement agreements with three of the nation’s largest egg producers, resolving allegations that the companies conspired for years to drive up egg prices, including during last year’s surge to record levels.
Federal and state officials accused Cal-Maine Foods, Versova and Hickman’s Egg Ranch of participating in a private arrangement from June 2022 through March 2025 to “artificially inflate the daily price quotations for eggs.” Investigators said the companies coordinated the bids they submitted to Urner Barry Publications, which operates a widely used pricing index that helps determine what supermarkets, restaurants and other buyers pay for billions of eggs annually.
That alleged coordination ultimately resulted in “higher prices for eggs sold to consumers,” according to the complaint filed Monday in Iowa, the same day the settlement terms were made public.
“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.”
The companies did not admit wrongdoing as part of the settlements. Still, to resolve the states’ claims, Cal-Maine, Versova and Hickman’s will collectively provide $3.3 million and 53 million eggs, James and other officials said. The eggs are expected to be donated to food banks and nonprofit organizations, while the money will be distributed among the participating states.
The Justice Department and the states also detailed required changes for the companies, including the creation of antitrust compliance programs and restrictions barring communications with competitors about pricing and bidding strategies.
The proposed settlements must still be approved by a court. Omeed A. Assefi of the Justice Department said Tuesday that the agreements would address “years of conduct that dragged on Americans’ finances and their everyday lives.”
U.S. egg prices climbed to an average record of about $6.23 per dozen in March 2025, as a bird flu outbreak forced farmers to cull millions of egg-laying hens. Producers pointed to the outbreak as the cause of the price spike, but critics argued that major companies were exploiting their market power, prompting the government 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.
