Several major egg suppliers are reportedly on the verge of reaching a settlement with the U.S. Justice Department and a bipartisan coalition of states over allegations that they illegally coordinated pricing, according to a Bloomberg News report published Thursday citing sources familiar with the situation.
Cal-Maine Foods, Hickman’s Egg Ranch, and Versova are all said to be nearing resolution of the probe, Bloomberg reported.
According to the report, the proposed settlement would require the companies to pay civil penalties totaling several million dollars and donate more than 50 million eggs. The firms would also agree to halt the sharing of pricing data and other competitively sensitive business information.
None of the parties — including the Justice Department, Cal-Maine Foods, Hickman’s Egg Ranch, or Versova — responded to requests for comment when reached by reporters.
A lawsuit filed in April alleged that egg producers used an industry price-benchmarking service to coordinate their pricing strategies, according to the Wall Street Journal.
The settlement talks come amid a broader legal wave facing U.S. egg producers, who have been hit with a growing number of class-action lawsuits alleging price-fixing. Consumer frustration over the cost of eggs has been mounting in recent years.
Egg prices across the country have climbed sharply after a series of bird flu outbreaks killed millions of egg-laying hens, creating significant supply shortages that pushed prices higher.
