Antitrust watchdogs are criticizing the $3.3 million settlement between industrial egg producers and the US Department of Justice for manipulating egg prices, arguing that it represents a fraction of the billions allegedly gained through the price-fixing scheme.
The Justice Department’s Antitrust Division, along with 17 state attorneys general, announced the settlement on June 30, and said in a press release that egg producers Cal-Maine Foods Inc., Hickman’s Egg Ranch Inc. and Versova/Centrum engaged in a coordinated manipulation of egg prices between June 2022 and March 2025.
The office of New York Attorney General Letitia James, which led the investigation along with the DOJ, said the three companies agreed to pay the settlement and donate 53 million eggs, 4.9 million of which will go to food banks and community organizations.
“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” said James. “These egg producers manipulated the market to squeeze even more profit out of consumers and businesses. By shutting this scheme down and delivering millions of eggs to those in need, we’re sending a clear message that companies will not get away with illegal price hikes in New York.”
The DOJ also strongly rebuked the egg producers, stating that food affordability a “top priority for the Antitrust Division.”
“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.”
However, critics condemned the settlement, arguing that egg producers made billions from the coordinated price manipulation scheme.
“I think this settlement at its core is a mockery of justice and a pretense of doing something on behalf of Americans, when in fact it’s not even a slap on the wrist – it’s not even pocket change for these companies,” said Delcianna Winders, associate professor of law, Animal Law and Policy Institute director, Vermont Law and Graduate School.
Mantiqueira USA, which bought Hickman’s in 2025, was the only one of the three companies that responded to email requests for comment.
“The conduct referenced in the complaint predates our acquisition of Hickman’s Egg Ranch in November 2025, and the matters addressed relate to a period before Hickman’s became part of our company. This settlement fully resolves the allegations against Hickman’s Egg Ranch related to that period,” Mantiqueira USA said. “We are committed to complying with all applicable laws and regulations and to conducting business with the highest standards of integrity.”
The price-fixing scheme
While none of the three companies admitted or denied wrongdoing in the investigation, the complaint from the DOJ and state attorneys general accuses them of agreeing to submit bids with the goal of artificially inflating the daily price quotations for eggs published by egg-pricing service Urner Barry Publications.
That led to higher prices for eggs sold by the producers to retailers, according to the DOJ.
“Defendants effectuated their conspiracy by, among other things: agreeing to submit a large number of bids in order to influence Urner Barry’s price quotations; agreeing that multiple defendants would submit bids so that a diverse set of market participants were bidding; agreeing to submit a large number of bids in the hours leading up to the publication of Urner Barry’s price quotations …” according to the DOJ.
The Antitrust Division noted in a press release that upon announcement of the Justice Department investigation in March 2024, “egg price quotations dropped significantly from their peak…”
A slap on the wrist?
Antitrust watchdog and author Matt Stoller asked the question about the settlement: “Is it enough?”
Not even close, he concludes, noting that the multi-year scheme netted the three companies some $3 billion in profits. “That’s a thousand-fold return,” Stoller wrote.
“Importantly, these firms also admitted no wrongdoing, meaning there can be no follow-on civil suits for victims using such admissions. Restaurants and consumers who paid for eggs are out of luck. And the alleged conspirators are released from all claims,” Stoller said. “Crime, as it turns out, pays. Allegedly.”
Winders similarly argued that the settlement charges the companies about $1 for every $1,000 in profit.
“This isn’t even rising to the level of the cost of doing business, and you want a fine to be more than the cost of doing business,” Winders said. “This is putting up a billboard saying, ‘Hey everybody, crime pays, price fixing pays. We’ll just make you pay, not even a penny on the dollar, for the profit that you make for price fixing.’”
