The U.S. Department of Justice’s Antitrust Division, alongside the attorneys general of 17 states, has filed a civil antitrust lawsuit against some of the nation’s largest egg producers for illegally coordinating to manipulate wholesale egg prices.
The lawsuit, filed in the U.S. District Court for the Northern District of Iowa, names Cal-Maine Foods Inc.(headquartered in Ridgeland, Mississippi), Hickman’s Egg Ranch Inc.(headquartered in Buckeye, Arizona), and Sioux Center, Iowa-based Versova (including Centrum Valley Holdings LLC, Versova Holdings LLC, and Versova Management Cooperative). Concurrent with the lawsuit, the DOJ filed proposed settlements that will, if approved by the court, prevent these companies from engaging in such coordinated manipulation in the future.
Allegations
According to the complaint, the defendants produce and sell eggs to grocery stores, restaurants and other businesses that ultimately supply American consumers. They also bid to acquire eggs on spot markets, including the Egg Clearinghouse.
The DOJ alleges that the producers conspired to artificially inflate the daily price quotations issued by Urner Barry Publications, a market reporting company whose indices directly influence wholesale contract pricing for billions of eggs nationwide every year.
As detailed in the complaint, the defendants conspired to inflate these price quotations by agreeing to:
- Submit a large number of bids.
- Cause multiple defendants to bid in order to signal to Urner Barry that a diverse set of market participants needed to buy eggs.
- Submit a large number of bids in the hours immediately leading up to the publication of Urner Barry’s price quotations.
- Submit bids that were highly unlikely to lead to executed trades.
- Execute spot trades at premium prices specifically to influence the benchmark.
Notably, the complaint highlights that egg price quotations dropped significantly from their peak immediately after the defendants learned of the Department’s investigation and were instructed to preserve documents in March 2025.
Proposed settlement terms
The proposed settlements result from the DOJ’s ongoing focus on anticompetitive practices that drive up food prices. Under the terms filed with the court, the defendants are prohibited from:
- Communicating with competitors regarding bidding strategies, including the prices, timing and number of bids.
- Communicating with competitors regarding certain information about bids, prices, supply and demand that they may share with a benchmark publication.
- Agreeing with competitors on the number, pricing or other terms of bids or transactions.
- Communicating with competitors regarding bids or transactions that are not based on legitimate business needs or are explicitly intended to affect a benchmark publication.
Additionally, the producers will be required to adopt formal antitrust compliance programs, appoint dedicated internal antitrust compliance officers, permit monitored oversight of cooperative and joint venture meetings, and immediately report potential violations.
Statements from Leadership
“No product more quintessentially represents affordability than the price Americans pay for eggs,” said Associate Attorney General Stanley Woodward. “These actions prove this Department’s continued commitment to protecting competition and providing real relief for everyday Americans’ pocketbooks.”
“Food affordability is a top priority of the Antitrust Division,” added Former Acting Assistant Attorney General Omeed A. Assefi. “These settlements resolve years of conduct that dragged on Americans’ finances and their everyday lives. I thank and recognize the dedicated work of the Division’s talented staff and state partners.”
“We are proud that these settlements will keep egg prices competitive and keep money in the hands of consumers across the country,” said Deputy Assistant Attorney General Nicole Sarrine.
Bipartisan Coalition and Next Steps
The investigation was conducted in partnership with a coalition of 17 states. The Attorneys General joining the DOJ in the complaint include: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin.
As required by the Tunney Act, the proposed settlements and competitive impact statements will be published in the Federal Register. The public will have 60 days to submit written comments to the Antitrust Division’s Chicago Office before the U.S. District Court for the Northern District of Iowa determines if entering the final judgments is in the public interest.
[RELATED: Flashfood Report: 90% Surge In Egg Purchases As Prices Squeeze Shoppers]