Three major egg producers have collectively reached a settlement with the Department of Justice and 17 states after a lawsuit accused the companies of illegally conspiring to inflate egg prices between 2022 and 2025.
The respective settlements with Cal-Maine Foods, Hickman’s Egg Ranch, and Versova Holdings were agreed upon last week, shortly after federal and state authorities filed the lawsuit.
As part of the agreement, the three companies agreed to pay $3.3 million in total to the states and donate 53 million eggs to food banks and nonprofit organizations. They admitted no wrongdoing, however.
The egg producers allegedly manipulated industry price benchmarks that ultimately influenced wholesale egg prices nationwide through coordinated bidding strategies and private trades, according to the complaint.
As a result, egg prices rose to record levels. That remained the case until the DOJ opened an investigation into the companies last year and ordered them to preserve documents. By then, egg prices fell sharply.
Wholesale egg prices nationwide peaked at $6.23 per dozen in March 2025. By May of this year, egg prices were down to average $2.19 per dozen.
Texas was one of the 17 states that joined the lawsuit. Food banks across the Lone Star State will receive 7 million eggs under the negotiated settlements, according to Texas Attorney General Ken Paxton.
“I will continue to hold any corporation accountable if they violate our laws to raise prices on Texans,” Paxton said. “These three major egg producers conspired to profit off antitrust violations that ultimately raised the prices of eggs for Americans. Now, they will have to donate over 7 million eggs to food banks across Texas. This settlement serves as another reform that we have secured to prevent price gouging and unlawful conduct that hurts Americans and their wallets.”
DOJ SUES EGG PRODUCER OVER ‘MANIPULATED’ PRICES
Besides Texas, the other states that sued the egg producers were Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Utah, Vermont, and Wisconsin.
The proposed settlements need approval from the U.S. District Court for the Northern District of Iowa to take effect.