Egg Producers to Pay $3.3 Million, Donate 53 Million Eggs in Price-Fixing Settlement

The US Department of Justice and 17 states have reached settlement agreements with three major egg producers to resolve allegations that the companies conspired to inflate egg prices, The Associated Press (AP) reported.

Major US egg producers reached a settlement over allegations that they conspired to inflate egg prices.

Federal and state authorities alleged that Cal-Maine Foods, Versova, and Hickman's Egg Ranch coordinated for years to manipulate egg prices, including during last year's record-high prices.

According to the complaint, the companies coordinated bids submitted to Urner Barry Publications, whose pricing index is widely used by grocery stores, restaurants, and food distributors to determine wholesale egg prices.

Authorities alleged that the arrangement artificially inflated prices paid by consumers.

"When powerful corporations collude behind the scenes to raise prices, working families suffer the costs," New York Attorney General Letitia James said.

To settle the claims, the three companies agreed to collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofit organizations. Settlement funds will be distributed among the participating states.