A recent settlement has emerged from a widespread investigation into fraudulent pricing in the egg industry. Three significant egg producers in the U.S., accused of artificially inflating prices and burdening consumers at grocery stores, will collectively pay $3.3 million. This settlement comes after negotiations with the Justice Department and 17 states.
Cal-Maine Foods, Versova, and Hickman’s Egg Ranch will not only face financial penalties but also contribute 53 million eggs to various charitable organizations, with 4.9 million eggs allocated specifically for food banks in New York, as indicated by New York Attorney General Letitia James.
An extensive bipartisan inquiry, involving both the James Office and the Department of Justice, commenced over a year ago. It uncovered that some leading egg producers were involved in collusion, secretly communicating to boost the daily egg price index from June 2022 until March 2025.
Emails from December 2022 revealed that the CEO of Hickman’s urged colleagues in Versova and Cal-Maine to “make strong bids early and often,” effectively pushing for higher prices on this staple item, according to prosecutors.
It appears that executives employed “spoofing tactics,” placing orders to manipulate prices before canceling them. This revelation was reported by a prominent newspaper.
This misconduct coincided with an actual shortage of eggs, which saw prices hitting unprecedented levels due to a significant bird flu outbreak. In late 2022, for instance, the price of large eggs in the Midwest skyrocketed to $5.36 per dozen.
As additional outbreaks struck in 2024 and 2025, prices continued to soar, severely affecting chicken populations. By January 2025, restaurant owners were dealing with the fallout as egg prices reached nearly $9 for a dozen—an increase of around 70% compared to the previous year.
In early 2025, as prices climbed even higher, some New York City liquor stores responded by selling “Loosie” style eggs, a nod to single cigarettes, reflecting just how dire the situation had become.
The proposed settlement still awaits the approval of a federal judge and would obligate the three companies to discontinue their price-fixing tactics. They will also need to comply with regulations and fully cooperate with ongoing state oversight.
Attorneys general from numerous states, including New York, California, and Texas, participated in reaching this resolution.
James stated that when major corporations collaborate in secret to hike prices, it’s everyday families who bear the financial burden. She emphasized that these producers manipulated the market for profits, and the actions taken in this settlement seek to deter such illegal practices.
Cal-Maine Foods, the largest supplier of eggs in the U.S., has asserted its innocence, claiming that its actions were lawful and appropriate, meant to ensure the availability of eggs to consumers. The company’s president noted that the agreement would allow them to prioritize delivering affordable and high-quality eggs to families across the nation.
Versova and Hickman also maintain that they did not engage in any wrongdoing, with Hickman asserting that the alleged misconduct took place prior to their acquisition of the business in late 2025.
