The Justice Department’s Antitrust Division, together with 17 State Attorneys General, filed a civil lawsuit against Cal-Maine Foods Inc. (Cal-Maine). Hickman’s Egg Ranch Inc. (Hickman’s); and Centrum Valley Holdings LLC, Versova Holdings LLC, and Versova Management Cooperative (Versova) for unlawful coordinated manipulation of egg prices. At the same time, the Department filed proposed settlements that will, if approved by the court, prevent these companies from engaging in such coordinated manipulation in the future.
Key details of the case
“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.”. “Food affordability is a top priority of the Antitrust Division,” said Former Acting Assistant Attorney General Omeed A.
Moreover, assefi of the Justice Department’s Antitrust Division. “These settlements resolve years of conduct that dragged on Americans’ finances and their everyday lives. I thank and recognize the dedicated work of the Division’s talented staff and state partners.”.
“The Antitrust Division is steadfast in our work to protect our nation’s citizens from illegal conduct that makes daily life less affordable,” said Deputy Assistant Attorney General Nicole Sarrine of the Justice Department’s Antitrust Division. “We are proud that these settlements will keep egg prices competitive and keep money in the hands of consumers across the country.”. Filed in the U.S.
Enforcement actions and official statements
District Court for the Northern District of Iowa, the complaint alleges that Cal-Maine, Hickman’s. Versova coordinated to artificially inflate the daily quotations of Urner Barry Publications, a market reporting company whose publications affect prices that grocery stores, restaurants, and others pay for eggs nationwide. Defendants produce and sell eggs to grocery stores, restaurants, and other businesses that ultimately sell or provide eggs to American consumers. For complete details, refer to the official DOJ press release.
As a result, defendants and other egg producers also bid to acquire eggs on spot markets, including the Egg Clearinghouse. Urner Barry considers this bidding information when it issues daily price quotations that influence wholesale egg prices. Every year, billions of eggs are sold with prices based on Urner Barry’s price quotations.
Consequently, as the complaint alleges, Defendants conspired to inflate Urner Barry’s price quotations by agreeing to: (1) submit a large number of bids. (2) cause multiple Defendants to bid in order to signal to Urner Barry that a diverse set of market participants needed to buy eggs; (3) submit a large number of bids in the hours leading up to the publication of Urner Barry’s price quotations; (4) submit bids that were unlikely to lead to executed trades; and (5) execute trades at premium prices. As the complaint also alleges, egg price quotations dropped significantly from their peak after Defendants learned of the Department’s investigation and were instructed to preserve documents in March 2025. For related coverage, see Former managers of waste pre-treatment facility plead guilty to illegally discharging waste into nashville sewer system — DOJ.
Notably, the proposed settlements result from the Department’s focus on anticompetitive practices that lead to higher food prices. If approved by the court, these settlements will prohibit Defendants from:. Additionally, the proposed settlements will require that Defendants adopt antitrust compliance programs, appoint antitrust compliance officers, monitor meetings of cooperatives and joint ventures.
Report potential violations of the proposed settlements. The Attorneys General of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont. Wisconsin joined the Department in the complaint and proposed settlements. For related coverage, see Alabama man sentenced to 10 years in prison on federal dog fighting and firearms charges; 78 dogs rescued and “destructive device” recovered — DOJ.
As required by the Tunney Act, the proposed settlements, along with competitive impact statements, will be published in the Federal Register. Any interested person should submit written comments concerning the proposed settlements within 60 days following the publication to Zachary Trotter and John Thornburgh, Acting Chief and Assistant Chief, Chicago Office, Antitrust Division, U.S. Department of Justice, Rookery Building, 209 S.
At the same time, laSalle St., Ste. 600, Chicago, Illinois 60604. At the conclusion of the public comment period, the U.S. District Court for the Northern District of Iowa may enter the final judgments upon finding they are in the public interest.
Anyone with information about anticompetitive conduct in agricultural industries or any other violations of the antitrust laws is encouraged to contact the Antitrust Division’s Citizen Complaint Center at 1-888-647-3258 or antitrust.complaints@usdoj.gov. Cal-Maine is headquartered in Ridgeland, Mississippi; Hickman’s is headquartered in Buckeye, Arizona; and Versova is headquartered in Sioux Center, Iowa. Note: See the Complaint here, the Proposed Final Judgments for Cal-Maine here, Hickman’s here.
