Egg Producers Reach State And Federal Settlement Over Price-Fixing Allegations
Three major egg producers agreed to a $3.3 million settlement and egg donations to resolve price-fixing allegations.Summary
Three major egg producers—Cal-Maine Foods Inc., Hickman’s Egg Ranch Inc., and Versova (comprising Centrum Valley Holdings LLC, Versova Holdings LLC, and Versova Management Cooperative)—have reached a $3.3 million settlement to resolve allegations of price fixing. The lawsuit, filed by the U.S. Department of Justice and Attorneys General from 17 states, alleged that these companies conspired to artificially inflate daily egg price quotations reported by Urner Barry Publications.
The defendants allegedly manipulated the market by submitting excessive or unlikely bids and coordinating trades to signal market needs and secure premium prices. Beyond the monetary recovery, the settlement includes a unique requirement for the companies to donate 53 million eggs to food banks and community organizations within the affected states. Additionally, the companies are prohibited from communicating with competitors regarding pricing strategies, bids, or market information for a period of five years.
(Source：Zerohedge)