Three prominent egg producers will pay a combined $3.3 million and contribute 53 million eggs following a government investigation into price-fixing tactics that raised egg costs amid widespread shortages. The settlement comes after the Justice Department and 17 state attorneys general uncovered evidence that Cal-Maine Foods, Versova, and Hickman’s Egg Ranch coordinated to artificially inflate egg prices between mid-2022 and early 2025.
The investigation revealed that executives from these companies engaged in secret communications designed to push the daily egg price index higher. Among the evidence was an internal email where Hickman’s CEO encouraged competitors to submit aggressive bids regularly to drive prices upward. The scheme exploited a period marked by historic supply constraints due to a devastating bird flu outbreak that decimated hen populations nationwide, sharply reducing egg availability and contributing to soaring carton prices.
During this period, egg prices surged dramatically, reaching historic highs with Midwest prices hitting over $5 per dozen in late 2022, then spiking near $9 per dozen by early 2025. These inflationary pressures led some retailers, such as New York City bodegas, to sell single eggs as customers grew unable to afford whole cartons. The DOJ's complaint also highlighted the use of sophisticated "spoofing-like" tactics, where companies placed fake buy or sell orders to manipulate market prices before canceling them, intensifying the artificial price escalation.
The settlement requires the companies not only to pay fines and make egg donations—4.9 million of which will support New York food banks—but also to end manipulative practices, implement compliance policies, and cooperate with ongoing state oversight. The coordinated effort involved attorneys general from a broad coalition of states including New York, California, Texas, Florida, and others.
This case underscores the impact of corporate collusion during critical shortages, showing how illicit pricing strategies can deepen the burden on consumers already struggling with rising grocery costs. The federal court still must approve the proposed settlement to make it official.