In a landmark resolution, the U.S. Justice Department, alongside 17 states, has struck a deal with three prominent egg producers to settle allegations of collusion aimed at artificially inflating egg prices. This agreement comes in the wake of extraordinary price hikes, with average egg costs reaching approximately £6.23 per dozen in March 2025, exacerbated by a bird flu outbreak that devastated poultry populations. The producers, Cal-Maine Foods, Versova, and Hickman’s Egg Ranch, will collectively pay $3.3 million and contribute 53 million eggs to community food banks and non-profit organisations.
Allegations of Collusion
Federal and state authorities accused Cal-Maine, Versova, and Hickman’s of engaging in covert practices to manipulate pricing data reported to Urner Barry Publications, a significant pricing index that influences the costs paid by supermarkets, restaurants, and other buyers for billions of eggs. The collusion allegedly spanned from June 2022 to March 2025, leading to inflated consumer prices during a period when many families were already struggling with rising living costs.
New York Attorney General Letitia James, a leading figure in the investigation, stated, “When powerful corporations collude behind the scenes to raise prices, working families suffer the costs. These egg producers manipulated the market to squeeze even more profit out of consumers and businesses.” Despite the gravity of these accusations, none of the companies have admitted wrongdoing as part of the settlement.
Settlement Terms
Under the terms of the agreement, the egg producers will pay a total of $3.3 million, which will be distributed among the participating states. They are also required to implement antitrust compliance programmes to prevent future misconduct. Notably, they must refrain from any communication regarding pricing or bidding strategies with competitors.
The Justice Department’s Omid A. Assefi remarked that these settlements aim to rectify years of behaviour that adversely affected American households and their finances. The settlements now await court approval.
Price Trends and Industry Responses
The average price of eggs peaked at approximately £6.23 per dozen, largely attributed to a bird flu epidemic that necessitated the culling of millions of egg-laying hens. Although producers pointed to this outbreak as a primary factor behind the price surge, critics contend that these companies exploited their market power, prompting the need for government intervention.
As the investigation unfolded, egg prices began to drop significantly. Following the Justice Department’s notice to the producers in March 2025, prices fell to under £2.20 per dozen by May 2026, driven by the recovery of poultry flocks despite ongoing challenges.
Cal-Maine, which is publicly traded, has maintained that the allegations of price manipulation are unfounded. CEO Sherman Miller stated that the settlement allows the company to focus on providing affordable and high-quality egg products. He cited several external factors, including avian flu and adverse weather, as contributors to the challenging market conditions that led to heightened prices.
Versova echoed similar sentiments, insisting that they do not control wholesale egg prices, which are influenced by the cost of feed. Meanwhile, Hickman’s new owner, Mantiqueira USA, clarified that the alleged misconduct occurred prior to their acquisition of the company and reaffirmed their commitment to legal compliance.
Consumer Advocacy and Ongoing Concerns
Despite the settlement, advocacy groups express disappointment, arguing that it falls short of holding these corporations accountable for their actions. Angela Huffman, president of Farm Action, remarked, “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 reported a staggering profit of $22 billion in the 2025 fiscal year, further raising concerns about the extent of corporate responsibility. The settlement breakdown indicates that Cal-Maine will pay $1.5 million and donate 30 million eggs, Versova will contribute 20 million eggs and $800,000, while Hickman’s share includes 3.25 million eggs and $1 million.
The states involved in the settlement include New York, Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
Why it Matters
The repercussions of this settlement extend far beyond the egg industry, highlighting significant concerns about corporate accountability and the impact of monopolistic practices on consumers. As families continue to grapple with rising living costs, the implications of this case serve as a stark reminder of the necessity for regulatory oversight in industries that significantly affect everyday lives. The outcome may set a precedent for how similar cases are handled in the future, influencing not just food prices but the broader landscape of corporate ethics and consumer rights.
