DOJ, States Reach Settlement With Egg Producers Over Alleged Price Benchmark Manipulation
The Justice Department and 17 states have reached proposed settlements with three major egg producers accused of coordinating conduct that allegedly inflated egg prices during a period when grocery costs were already straining consumers.
The DOJ’s Antitrust Division filed a civil lawsuit against Cal-Maine Foods, Hickman’s Egg Ranch and Versova-related entities, alleging the companies coordinated bidding activity to influence daily egg price quotations published by Urner Barry, a benchmark used in egg supply contracts. Federal officials said those quotations affect prices paid by grocery stores, restaurants and other buyers nationwide.
The proposed settlements would prohibit the companies from coordinating with competitors on bidding strategies, bid timing, prices, supply, demand and benchmark-related conduct. They would also require antitrust compliance programs, compliance officers and monitoring of certain cooperative or joint venture meetings. The settlements still require court approval after a public comment process.
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Separately, state officials said the companies will collectively provide $3.3 million and donate 53 million eggs to food banks and nonprofits across participating states. New York Attorney General Letitia James said roughly 4.9 million eggs will go to food banks and community groups serving New Yorkers.
The case matters because it centers on how benchmark prices can ripple through everyday grocery costs. DOJ officials allege the companies used bids, including bids unlikely to result in trades, to send signals that pushed published egg quotations higher.
The companies did not admit wrongdoing. Cal-Maine said the allegations were baseless and that it believes its conduct was legal. Versova cited bird flu, feed costs and broader supply pressures, while Hickman’s current owner said the alleged conduct predates its acquisition.
For consumers, the settlement offers immediate food-bank relief. For the egg industry, the larger consequence is federal and state oversight aimed at preventing future benchmark manipulation.
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