Federal and state antitrust authorities have reached a proposed settlement with three of the nation’s largest egg producers after alleging they coordinated trading activity to influence wholesale egg price benchmarks, a case that adds to growing regulatory scrutiny of competition practices in U.S. agricultural markets.
According to The Wall Street Journal, in reporting by Dave Michaels and Patrick Thomas, the U.S. Department of Justice and attorneys general from 17 states alleged that Cal-Maine Foods, Hickman’s Egg Ranch and Versova worked together between 2022 and 2025 to affect benchmark egg prices used throughout the industry, contributing to elevated prices paid by retailers and consumers.
The proposed settlement, which remains subject to court approval, calls for the companies to donate more than 50 million eggs to food banks and pay approximately $3.3 million to New York and other participating states that investigated the matter, according to court filings cited by The Wall Street Journal.
The lawsuit centers on allegations that competing producers coordinated bids submitted to a wholesale egg exchange that helps establish a widely used market benchmark. Antitrust authorities also contend the companies arranged certain off-exchange transactions at elevated prices that were subsequently incorporated into the benchmark calculation, according to the complaint described by The Wall Street Journal.
The case emerged after egg prices reached historic highs during an extended outbreak of highly pathogenic avian influenza, which sharply reduced the U.S. egg-laying flock. Industry participants consistently argued that supply disruptions—not collusion—were responsible for the surge in prices.
Cal-Maine Foods said it denies any wrongdoing and maintains that communications cited by investigators did not influence market prices. The company has stated that its actions were lawful and occurred during an unusually volatile period for the industry. Versova also denied violating antitrust laws, saying it chose to settle the matter so it could focus on operating its business. Hickman’s Egg Ranch, now owned by a joint venture involving JBS and Mantiqueira USA, said the alleged conduct predated the acquisition and that the agreement resolves the claims against the company.
The settlement follows a broader federal investigation into pricing practices within the egg industry.
Related: US Justice Department Prepares Antitrust Case Against Major Egg Producers
Earlier this year, The Wall Street Journal reported that the Justice Department was preparing a civil antitrust lawsuit examining whether major egg producers coordinated pricing through Expana, formerly known as Urner Barry, a service that publishes benchmark prices based on market transaction data. Reuters separately reported that the planned lawsuit reflected the government’s broader effort to examine alleged coordination in concentrated agricultural markets.
Federal investigators first opened the inquiry in 2025 amid mounting concern over rapidly rising egg prices. According to previous reporting by The Wall Street Journal, investigators sought records involving communications among competitors and pricing discussions connected to benchmark reporting services while examining whether companies had coordinated prices or restricted supply.
The investigation unfolded against the backdrop of one of the most severe avian influenza outbreaks in U.S. history. The U.S. Department of Agriculture has reported that approximately 200 million poultry, including egg-laying hens, have died or been culled since the outbreak began in 2022 as authorities attempted to limit the spread of the virus. Those losses substantially reduced egg production capacity and contributed to widespread shortages.
As outbreaks have eased in recent months and producers rebuilt their flocks, retail egg prices have fallen significantly. According to Labor Department data cited by The Wall Street Journal, the national average retail price declined to roughly $2 per dozen in May 2026, about 35% lower than a year earlier.
The case represents another example of heightened federal attention to competition issues involving information sharing and benchmark pricing systems. In recent years, the Justice Department has pursued antitrust cases involving pricing platforms and data-sharing services in multiple industries, arguing that exchanges of competitively sensitive information can facilitate unlawful coordination when they reduce independent decision-making among rivals.
Source: The Wall Street Journal
