$3.3 Million Settlement Over Egg Price Manipulation — DOJ Cracks Down
By John Nada·Jun 30, 2026·2 min read
A $3.3 million settlement follows DOJ's probe into alleged egg price manipulation by top producers, amid industry claims of bird flu impacts.
A $3.3 million settlement reflects a crackdown on alleged egg price manipulation by major producers. The U.S. Department of Justice and 17 state attorneys general claim Cal-Maine Foods, Versova, and Hickman's Egg Ranch inflated egg prices through collusion. But these companies argue bird flu, not collusion, caused pricing hikes.
According to CNBC Business, the DOJ's investigation revealed secret communications among the producers, aiming to influence daily price quotes published by Urner Barry. This manipulation allegedly spanned nearly three years, from June 2022 to March 2025. The settlement requires a federal judge's approval, but it stipulates preventive measures like antitrust compliance programs.
Yet, Cal-Maine and Versova deny any wrongdoing. In statements, they maintain that the bird flu was the real culprit behind soaring egg prices. A historic outbreak of avian influenza decimated chicken populations, creating significant supply shocks. Hickman's hasn't commented on the settlement publicly.
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The DOJ's stance isn't just based on anecdotal evidence. Egg prices had previously surged by 150% in February 2023, according to Bureau of Labor Statistics data. Economists blamed the bird flu, which drastically reduced egg production. While companies cite these outbreaks, the Justice Department highlights the timing of price drops following the investigation's announcement.
This contrast in narratives poses questions about the complexity of market forces. Cal-Maine has agreed to pay $1.5 million, Hickman's $1 million, and Versova $800,000. Moreover, the companies will donate 53 million eggs to food banks, a gesture towards consumer support. Yet the settlement doesn't clear them of public scrutiny.
Versova asserts that most of their eggs sell under grain-based contracts, which means prices reflect the cost of grain for hen feed. This adds another layer to the pricing debate, suggesting external agricultural factors also play a role. Nonetheless, a DOJ investigation into price manipulation paints a picture of deeper industry issues.
Ultimately, while the settlement marks a significant regulatory action, it opens a broader discussion on what drives food prices. As Former Acting Assistant Attorney General Omeed A. Assefi stated, ensuring food affordability remains a top priority for the Antitrust Division. The settlement doesn't erase past conduct but offers a framework for preventing future manipulations.