Attorney General James Secures More Than 140,000 Eggs for Southern Tier Families

NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 140,000 eggs to Food Bank of the Southern Tier in Elmira as part of a bipartisan multistate settlement with Cal-Maine Foods (Cal-Maine), Versova/Centrum (Versova), and Hickman’s Egg Ranch (Hickman’s) for years of price fixing. A multistate investigation led by the Office of the Attorney General (OAG) alongside the U.S. Department of Justice (DOJ) and 16 other states revealed that Cal-Maine, Versova, and Hickman’s illegally coordinated to influence a daily price index for eggs. The investigation alleged that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under a settlement with the states, the three egg producers will deliver 53 million eggs to food banks in the 17 participating states, including 4,968,000 eggs to New York. In addition to the egg deliveries, the companies will pay $3.3 million to the states and make changes to their practices to prevent future violations of the law. The delivery of 11,700 cartons of a dozen eggs to Food Bank of the Southern Tier is the third in a series of egg deliveries to food banks statewide.

“Companies are not allowed to work together behind the scenes to raise the price of items and squeeze extra profits from hard-working New Yorkers,” said Attorney General James. “It is unacceptable that these companies conspired together to inflate New Yorkers’ grocery bills. I am proud to secure this donation of eggs for families across the Southern Tier to help New Yorkers in need.”

“Eggs are a nutritious and highly requested staple for the families we serve,” said Mark Bordeau, President and CEO of Food Bank of the Southern Tier. “We are grateful to receive 140,000 eggs today through this settlement, helping our network of community partners provide wholesome, protein-rich food to neighbors across the Southern Tier.”  

140,000 eggs delivered to Food Bank of the Southern Tier that will be distributed throughout the Southern Tier

Attorney General James and the coalition’s investigation found that beginning at least as early as 2022, these three major egg producers secretly coordinated their bidding strategies to influence the daily egg price quotes published by Urner Barry, a benchmark pricing service widely used in egg supply contracts. The companies submitted sham bids at artificially inflated prices to distort the market, then withdrew those bids, intentionally aiming to raise the Urner Barry price quotes. By manipulating the Urner Barry benchmark, the companies artificially inflated the price of eggs paid by retailers and consumers nationwide.

As a result of settlements with OAG and the coalition of states, the three companies will deliver a total of 53 million eggs to food banks and nonprofit organizations across the participating states and pay a combined $3.3 million. Under a separate settlement with DOJ and the coalition of states, the companies will also adopt compliance measures to prevent future illegal coordination. New York will receive 4,968,000 eggs, all of which will be distributed through Feeding New York, the statewide network overseeing New York’s food banks. The first truckload of 280,800 eggs was delivered to City Harvest in Brooklyn, and on Tuesday, 280,800 eggs were delivered to Foodlink in Rochester. Deliveries statewide will continue through mid-October.

“I want to thank Attorney General James for her efforts in pursuing those companies who illegally colluded to drive up egg prices for our citizens,” said Chemung County Legislature Chair Mark Margeson. “Thanks to her efforts, Elmira will be receiving 140,000 eggs as part of the settlement. In the absence of the illegal collusion, egg prices have returned to normal for all consumers, and now the most vulnerable members of our community will see the shelves at area food banks full of nutritious eggs. If you are struggling to put food on the table, call the 211 hotline for assistance in finding food and other support services, or visit Food Bank of the Southern Tier online.” 

“Chemung County families have been getting crushed by tariffs, war-driven inflation, and corporate greed,” said Elmira City Councilor Gary Brinn. “It is good to have Attorney General James on our side protecting New Yorkers from illegal business practices. This settlement represents better nutrition for our children, and hope for a just economy.” 

Joining Attorney General James and DOJ in securing this settlement were the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

For New York, this matter was handled by Assistant Attorneys General Isabella Pitt and James Yoon, Senior Enforcement Counsel Michael D. Schwartz, and Legal Fellow Amanda McBain of the Antitrust Bureau, and with the assistance of Assistant Attorney General John P. Figura of the Consumer Frauds and Protection Bureau, under the supervision of Bureau Chief Elinor R. Hoffmann and Deputy Bureau Chief Amy McFarlane. The Antitrust Bureau is part of the Division of Economic Justice, overseen by Chief Deputy Attorney General Christopher D’Angelo and First Deputy Attorney General Jennifer Levy