A multi-state settlement announced by Minnesota Attorney General Keith Ellison could deliver over 50 million eggs and $3.3 million to food banks and nonprofit organizations across 17 states, including 2 million eggs to organizations serving Minnesotans.

Price Manipulation Allegations

The settlement comes after a joint investigation by the U.S. Department of Justice and the states alleged three of the nation’s largest egg producers – Cal-Maine Foods, Hickman’s Egg Ranch, and Versova – illegally coordinated to inflate egg prices nationwide.

According to the DOJ, the companies secretly coordinated from June 2022 through March 2025 to manipulate daily egg price quotations published by Urner Barry Publications, a benchmark widely used in egg supply contracts, resulting in higher prices for retailers and consumers.

The complaint alleges the companies communicated behind the scenes about how and when to submit bids that would influence the benchmark price. In one example, the CEO of Hickman’s emailed executives at Versova and Cal-Maine in December 2022 urging them to submit “strong bids, early and often” to push prices higher.

Settlement Terms

Under the proposed settlement, the companies must stop communicating with competitors about bidding strategies, pricing, and other information intended to influence benchmark publications. They must also establish antitrust compliance programs, appoint compliance officers, and cooperate with ongoing oversight by the participating states and the Justice Department.

In addition to providing the eggs at their own expense, the companies would also pay a combined $3.3 million to the states participating in the lawsuit.

Original reporting: KTBS 3 (Shreveport) — read the source article.