The U.S. Justice Department and 17 states have struck deals with three of the country’s largest egg producers to settle accusations that the companies secretly worked together to illegally drive up egg prices — including during the period when costs hit record highs.
Federal and state authorities accused Cal-Maine Foods, Versova, and Hickman’s Egg Ranch of quietly coordinating from June 2022 through March 2025 to “artificially inflate the daily price quotations for eggs.” Investigators found the companies worked together on what bids they submitted to Urner Barry Publications, a firm that runs a pricing index used to determine how much grocery stores, restaurants, and other buyers pay for billions of eggs every year.
That coordination ultimately led to “higher prices for eggs sold to consumers,” according to the complaint, which was filed in Iowa on Monday — the same day the settlement terms were made public.
“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” said New York Attorney General Letitia James, one of the lead investigators on the case. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.”
None of the three companies admitted any wrongdoing as part of the agreements. However, to resolve the states’ claims, Cal-Maine, Versova, and Hickman’s will together owe $3.3 million in cash and 53 million eggs. The eggs will be donated to food banks and nonprofit organizations, while the money will be divided among the participating states.
As part of the settlements, the companies must also put antitrust compliance programs in place and are prohibited from communicating with competitors about pricing or bidding strategies.
The agreements are not yet final — they still require a judge’s approval. Justice Department official Omeed A. Assefi said Tuesday that the proposed deals “resolve years of conduct that dragged on Americans’ finances and their everyday lives.”
Average egg prices in the U.S. climbed to a record high of roughly $6.23 per dozen in March 2025, largely driven by a widespread bird flu outbreak that led to the slaughter of millions of egg-laying hens. The egg industry pointed to the disease as the cause of the price spike, but critics argued that large producers were exploiting their market power — prompting the government investigation.
The complaint notes that price quotations “dropped significantly” after Cal-Maine, Versova, and Hickman’s were notified of the Justice Department’s investigation and told to preserve their records in March 2025. Consumer prices also fell sharply afterward, dropping to under $2.20 per dozen as of May 2026, as poultry flocks were rebuilt even as the outbreak continued.
Cal-Maine pushed back on the allegations Monday, calling claims of price manipulation “baseless” and maintaining that its actions were lawful. The company also noted that while it had participated in a cooperative with the other two producers, it exited that group in May 2024.
Despite its denial, Cal-Maine CEO Sherman Miller said the settlement “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 also described the period under review as “a particularly challenging time,” pointing to avian flu, the COVID-19 pandemic, severe weather, and other market disruptions as factors behind recent supply shortages and elevated prices. He said the company “took numerous steps to protect and grow its hen flock” throughout that period.
Versova offered a similar response, highlighting the hardship bird flu has placed on its farmers, who it said “don’t set the wholesale price of eggs.” The company argued that the cost of most of its eggs is tied to fluctuations in the price of grain used to feed hens.
Hickman’s new owner, Mantiqueira USA — which purchased the egg producer in November — stated that the “conduct referenced in the complaint predates our acquisition” and expressed its commitment to following the law going forward.
Not everyone views the settlements as sufficient. Angela Huffman, president of the advocacy group Farm Action, criticized the outcome: “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.”
Cal-Maine, the only one of the three companies that is publicly traded and reports quarterly earnings, posted a profit of $1.22 billion for its 2025 fiscal year. Under its portion of the settlement, Cal-Maine will pay $1.5 million and donate 30 million eggs. Versova will contribute 20 million eggs and $800,000, while Hickman’s is responsible for 3.25 million eggs and $1 million.
In addition to New York, the states involved in the settlement include Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
