DOJ crackdown: Arizona egg farm would shell out millions of eggs under proposed settlement

The U.S. Department of Justice and 17 state attorneys general, including Arizona’s, filed a federal lawsuit this week accusing three of the nation’s largest egg companies of secretly working together to drive up egg prices.

At the same time, the government put together a proposed settlement that will, if approved by a judge, include 53 million eggs donated to food banks nationwide.

The joint investigation revealed that Buckeye-headquartered Hickman’s Family Farm, Cal-Maine Foods and Versova/Centrum secretly coordinated their bidding activity to manipulate the daily egg price index that grocery stores and restaurants rely on to set prices.

How the alleged egg price fixing worked

According to court filings, between June 2022 and March 2025, the companies agreed to submit bids designed to artificially inflate the daily price quotes for eggs published by Urner Barry Publications, a firm that reports market pricing information. Those are then baked into what grocery store and restaurant prices.

Although Hickman’s Family Farm was sold to Mantiquiera USA, this alleged activity took place before the current owners took over.

Court records detail the coordination.

In one December 2022 example highlighted in court filings, Hickman’s CEO emailed Versova and Cal-Maine executives urging them to submit “strong bids, early and often” to push prices higher.

All three companies then collectively submitted dozens of bids, most at premium prices, while all other market participants combined submitted fewer than six bids that morning.

Wholesale egg price quotes dropped significantly from their February 2025 peak after the companies learned of the DOJ investigation and were instructed to preserve documents on March 5, 2025, according to the complaint.

Bureau of Labor Statistics data shows retail egg prices followed, falling from a March 2025 peak of $6.23 per dozen to $2.19 by May 2026. The Justice Department argues this pattern supports the price manipulation allegation.

What the settlement does for consumers

As part of the proposed settlement, the 53 million donated eggs would be provided at the companies’ expense to food banks and nonprofit organizations across the participating states.

The companies would also pay a combined $3.3 million to the states. Under the settlement terms, each company must appoint an antitrust compliance officer to monitor for violations and report any issues directly to state attorneys general and the DOJ.

“Arizonans have had to pay more for household staples due to illegal tariffs and rising inflation,” Arizona Attorney General Kris Mayes said in a news release. “Now we know that some prices increases, like those affecting eggs, were the result of illegal price-fixing by major egg producers. This settlement holds these companies accountable, ends their illegal conduct and helps Arizonans who need it the most.”

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