DOJ, states settle egg price-fixing case against Cal-Maine

According to the settlement, the alleged strategy ran from astir June 2022 done March 2025, during which Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch worked successful performance to sway the regular terms quotes that Urner Barry — a pricing work whose ovum benchmark underpins galore proviso contracts — publishes each day. By submitting coordinated bids to inflate the benchmark, the companies artificially raised prices paid by retailers and consumers nationwide, the conjugation alleged.

In 1 documented example, Hickman's then-chief enforcement emailed executives astatine Versova and Cal-Maine successful December 2022 urging them to taxable "strong bids, aboriginal and often" to propulsion prices higher, according to the New York lawyer general's office. The 3 companies past submitted dozens of higher-priced bids, prompting Urner Barry to rise its terms quotes. Once the 3 companies became alert of the Justice Department's probe successful March 2025, benchmark ovum terms quotes fell sharply, according to national officials.

The fiscal presumption interruption down arsenic follows, according to CNBC: Cal-Maine is connected the hook for $1.5 cardinal positive a committedness to proviso 30 cardinal eggs, portion Hickman's volition lend $1 cardinal and Versova $800,000. Going forward, each institution is required to instal dedicated antitrust compliance officers and enactment ceremonial compliance programs successful spot to defender against aboriginal terms coordination. Cal-Maine was not assessed immoderate fines oregon penalties by the DOJ, the institution said.

All 3 companies denied wrongdoing. In an SEC filing, Cal-Maine pushed backmost connected the allegations, arguing that a erstwhile employee's communications referenced successful the ailment had nary bearing connected existent ovum prices and that the company's behaviour passim the play successful question was wholly lawful. "We are pleased that this statement enables america to determination guardant truthful we tin give our afloat attraction to what matters most," said Sherman Miller, president and CEO of Cal-Maine Foods, successful a statement. Versova, for its part, framed the solution arsenic a pragmatic choice, telling CNBC that agreeing to the woody was driven by a tendency to determination connected alternatively than immoderate admittance of liability. Hickman's, present owned done a associated task involving JBS and Mantiqueira USA, a Brazilian ovum producer, noted successful a connection cited by The Wall Street Journal that the alleged behaviour occurred earlier the existent owners took control, though the colony covers each outstanding claims.