DOJ reaches settlement with major egg producers over alleged price manipulation

Key Points:

• The Justice Department and attorneys general from 17 states proposed settlements with three major egg producers—Cal-Maine Foods, Hickman's Egg Ranch, and Versova—accused of coordinating to manipulate a pricing benchmark that inflated egg prices nationwide.
• Alongside the settlements, a civil antitrust lawsuit was filed alleging the companies manipulated daily price quotations published by Urner Barry to create the appearance of stronger demand and artificially raise prices.
• The companies agreed to pay a combined $3.3 million to participating states and donate approximately 53 million eggs to food banks, while adopting antitrust compliance measures to prevent future misconduct.
• Cal-Maine Foods denied wrongdoing, stating it was not fined but agreed to pay $1.5 million and donate 30 million eggs, while Mantiqueira USA, which acquired Hickman's Egg Ranch after the alleged misconduct, said the settlement resolves past allegations.
• The proposed settlements are subject to federal court approval following a 60-day public comment period as required under the Tunney Act.