The family behind the largest egg production company in the U.S. has reportedly made around $320 million by selling off part of its stake in Cal-Maine Foods. This comes shortly after federal authorities started investigating allegations that egg producers were manipulating prices, which led to significant inflation in grocery costs.
For nearly 70 years, the Adams family, which managed Mississippi-based Cal-Maine Co., capitalized on the company’s peak stock performance. The stock price nearly doubled from mid-2022 to early 2025, as egg prices and profits rose sharply, boosting the company’s overall market value.
This sale coincided with indictments from the Justice Department and 17 states against rival egg producers in Maine and California, who are accused of colluding to artificially raise the prices of billions of eggs sold to various retail and food service channels across the U.S.
Federal prosecutors allege that Cal-Maine and its competitors coordinated their bids to manipulate essential pricing standards used industry-wide. Company filings indicate that the Adams family converted special voting rights shares into common shares, leading to the sale of roughly 3 million shares for $92.75 each through a Goldman Sachs-led offering.
The company also agreed to repurchase around $50 million worth of shares from the Adams family post-transaction. Even after selling part of their holdings, the family maintained a stake in Cal-Maine, where former CEO Adolphus “Dolph” Baker, son-in-law to the late founder Fred Adams Jr., continues to serve as chairman.
The transaction unfolded after Cal-Maine disclosed in an SEC filing about a civil investigation request from the Department of Justice related to a nationwide antitrust probe regarding egg prices.
Federal prosecutors believe that Cal-Maine’s actions were excessive, alleging that, between June 2022 and March 2025, executives from Cal-Maine, Versova, and Hickman’s Egg Ranch collaborated on bidding that swayed daily egg price quotes published by Urner Barry, a prominent industry benchmark.
Cal-Maine has denied any wrongdoing, asserting that egg prices are influenced by factors such as bird flu and other market dynamics.
The potential settlement, pending court approval and without any admission of guilt, would require Cal-Maine, Versova, and Hickman’s to contribute 53 million eggs to food banks, allocate $3.3 million to the affected states, and adhere to communication limitations with competitors.
Evidence presented in the complaint includes a series of communications that purportedly document the coordination efforts. In one instance, a Cal-Maine executive reportedly texted Hickman’s CEO to coordinate a bidding strategy, saying, “We’re making a bid. Let’s hold it today.” Another communication suggested that they should make vigorous bids “early and often.”
This alleged scheme reportedly allowed egg prices to skyrocket to unprecedented levels during the investigation period. After news broke regarding the federal inquiry last March, the Justice Department indicated that benchmark prices began to decline.
Inquiries made to Cal-Maine Foods, Baker, the Adams family, Versova, Hickman’s Egg Ranch, the Department of Justice, and the SEC did not yield any responses, while Goldman Sachs chose not to comment.
