The three settlement agreements combine monetary relief and egg donations with significant behavioral commitments.

On June 29, 2026, the U.S. Department of Justice (DOJ) and 17 states filed a civil antitrust complaint and simultaneously entered proposed consent judgments with three major egg producers—Cal-Maine Foods, Versova and Hickman’s Egg Ranch—alleging that the defendants conspired to manipulate Urner Barry’s daily egg price quotations by coordinating bids on the Egg Clearinghouse Inc. (ECI) platform between June 2022 and March 2025. The case, United States v. Cal-Maine Foods, Inc., marks a significant enforcement action that illustrates how federal enforcers are approaching benchmark manipulation in concentrated commodity markets.

Key Takeaways

• Three of the nation’s largest egg producers will collectively pay $3.3 million and donate 53 million eggs to food banks and nonprofits to settle claims by DOJ and 17 state attorneys general that producers violated Section 1 of the Sherman Act.
• Each proposed final judgment imposes a five-year compliance term requiring antitrust compliance programs, a DOJ-approved compliance officer, biannual certifications under penalty of perjury and strict prohibitions on competitor communications regarding bidding strategies, prices, timing and number of bids.
• None of the companies admitted wrongdoing; each consent judgment was entered “without trial or adjudication of any issue of fact or law.”
• The case signals DOJ’s willingness to pursue benchmark manipulation theories in concentrated commodity markets—a framework likely applicable to other industries that rely on price indices or reporting services.

Background

Urner Barry publishes daily wholesale egg price quotations that serve as a benchmark for commercial contracts throughout the egg industry. ECI operates an electronic trading platform where producers and buyers transact in the spot market—the market for immediate purchase and sale of commodities at current prices, as opposed to prices set by long-term contracts. Prices from ECI transactions are among the inputs Urner Barry uses to set its published quotations.

The complaint alleges that from 2022 to 2025, several of the defendants operated “net short”—producing fewer eggs than their retail contracts required and purchasing the shortfall on ECI where higher bids could raise the Urner Barry benchmarks that determined pricing under those contracts. The complaint alleges that the defendants coordinated this bidding strategy and quotes a number of communications between executives at competing firms discussing their approach. The complaint also alleges that price quotations “dropped significantly” once the defendants became aware of the investigation in March 2025.

Seventeen states joined the federal government in the action: Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont and Wisconsin.

The Settlement Terms

The three settlement agreements combine monetary relief and egg donations with significant behavioral commitments.

Cal-Maine will provide $1.5 million to the state plaintiffs and 30 million eggs (roughly four months to complete donations) to entities identified by the states. Cal-Maine reported $1.22 billion in profit for fiscal year 2025, making the penalty roughly 0.12 percent of annual earnings.

Versova will provide $800,000 to the state plaintiffs and 20 million eggs to entities identified by the states (36 months to complete donations).

Hickman’s Egg Ranch will provide $1 million to the state plaintiffs and 3.25 million eggs to entities identified by the states (18 months to complete donations). Current owner Mantiqueira USA, which acquired Hickman’s in November, noted the conduct predates its acquisition.

Additionally, each company must designate a DOJ-approved antitrust compliance officer, and for five years following entry of the proposed final judgment, conduct annual training, submit biannual certifications under penalty of perjury and provide written explanations for every deleted ECI bid. The proposed final judgments also allow plaintiffs to enforce violations that occurred during the decree period for four years after the decree obligations conclude, in turn allowing the DOJ to seek an extension if it discovers violations after the initial term expires. The settlements require court approval under the Tunney Act.

Conclusion

The settlement has implications beyond the egg market. Companies in industries that rely on price indices or benchmarks should review their antitrust compliance programs and consult experienced antitrust counsel.

For More Information

If you have any questions about this Alert, please contact Christopher H. Casey, Katherine Speegle, Kirk Williams McLeod, any of the attorneys in our Antitrust and Competition Group or the attorney in the firm with whom you are regularly in contact.

Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.