DOJ: Egg Producers Colluded to Drive Up Prices During Supply Crisis
The U.S. Justice Department alleges that three major egg producers manipulated industry pricing during the recent egg shortage, helping push egg prices to record highs while millions of Americans grappled with rising grocery costs. The companies have reached a settlement • Read More
Three of America’s largest egg producers have agreed to a settlement after the U.S. Department of Justice and 17 states accused them of secretly coordinating to manipulate egg prices, driving up costs for millions of consumers over nearly three years.
According to the complaint, Cal-Maine Foods, Versova, and Hickman’s Egg Ranch conspired between June 2022 and March 2025 to artificially inflate the benchmark price of eggs by coordinating the bids they submitted to Urner Barry, the pricing index widely used by grocery stores, restaurants, and food distributors.
By manipulating the industry’s key price benchmark, prosecutors allege the companies were able to push egg prices higher nationwide.
Authorities say the alleged scheme continued even as consumers struggled with soaring grocery bills during the avian influenza outbreak. While reduced egg supplies contributed to higher prices, investigators contend the companies exploited the crisis by colluding behind the scenes instead of competing fairly.
The complaint also notes that benchmark egg prices fell sharply after the companies learned they were under federal investigation and were ordered to preserve documents in March 2025, a development prosecutors say further supports the allegations of coordinated pricing.
Under the proposed settlement, the three companies will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofit organizations. They also agreed to implement antitrust compliance measures and are prohibited from communicating with competitors about pricing or bidding strategies.
The companies denied any wrongdoing and did not admit liability as part of the settlement, which still requires court approval. Consumer advocates, however, argue the penalties are modest compared to the billions of dollars in revenue generated while egg prices reached record highs.
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