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

NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 140,000 eggs to Feeding Westchester in Elmsford 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 Feeding Westchester is the sixth in a series of egg deliveries to food banks statewide.

“For years, corporate greed pushed egg prices higher for working families throughout New York and the nation,” said Attorney General James. “My office led an investigation into some of the country’s largest egg producers and shut down an illegal bid-rigging scheme. New Yorkers deserve fair prices at the grocery store, and I thank Feeding Westchester for partnering with our office to help deliver free eggs for those in need.”

“This delivery of fresh, local eggs comes at a critical time for our community,” said Kristine Borok, President and CEO of Feeding Westchester. “The most recent ALICE Report shows that nearly half of all New York state residents, and 41 percent of Westchester households, struggle to afford food and other basic necessities, often despite working full-time jobs. Feeding Westchester and our 175 partners will ensure these eggs are distributed quickly to where they provide healthy meals for families that need them most.” 

More than 140,000 eggs delivered to Feeding Westchester that will be distributed throughout Westchester (Photos courtesy of Feeding Westchester)

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. To date more than 1.2 million eggs have been distributed so far to food banks in Brooklyn, Rochester, Syracuse, Southern Tier, and the Bronx. Deliveries statewide will continue through October.

“At a time when grocery prices are rising and New Yorkers are struggling to feed their families, companies colluding to raise egg prices are not only intolerable but illegal,” said Congressman George Latimer. “I am grateful to Attorney General James for fighting to prevent illegal coordination and delivering 140,000 eggs to Feeding Westchester to make right on this injustice.” 

“Every family deserves to be able to put nutritious food on the table without having to choose between groceries and other basic necessities,” said Westchester County Executive Ken Jenkins. “This donation of 140,000 eggs to Feeding Westchester will help provide a critical food source to our neighbors who are struggling to make ends meet. I want to thank Attorney General James for holding companies accountable for driving up costs for consumers, and for ensuring that this settlement delivers meaningful support directly to Westchester County’s families. Turning wrongdoing into assistance for people in need is a powerful example of how accountability can make a real difference in our communities.” 

“Food insecurity continues to place a strain on families, leaving too many wondering whether there will be enough food on the table,” said Senator Nathalia Fernandez. “This settlement holds companies accountable for driving up the cost of a basic necessity and delivers meaningful relief to families who need it. I am grateful for Attorney General James standing up for New Yorkers and Feeding Westchester, and ensuring these 140,000 eggs reach our neighbors across Westchester.” 

“Eggs are a dietary staple for many, and this corporate collusion to artificially inflate egg prices has placed an added burden on families across Westchester,” said Senator Pete Harckham. “These 140,000 eggs will help strengthen the food offerings at Feeding Westchester and ensure that individuals and families facing food insecurity have access to nutritious, high-quality food. Thank you to Attorney General James for holding corporations accountable and standing up for the needs of everyday New Yorkers.” 

“I applaud Attorney General James for protecting New Yorkers from companies that manipulate markets to drive up prices at New Yorkers’ expense,” said Senator Shelley Mayer. “At a time when families are already feeling the strain of high grocery prices, companies that unfairly raise the price of eggs for their own profit is unacceptable. The 140,000 eggs being donated to Feeding Westchester will provide meaningful support to families throughout our community who are struggling to put nutritious food on the table. I thank Attorney General James for leading this investigation, holding those responsible accountable, and securing a settlement that will both protect consumers and directly help New Yorkers in need.” 

“Thank you to Attorney General James for helping to secure such a favorable settlement in the multistate price fixing litigation,” said Assemblymember Chris Burdick. “Feeding Westchester is the lifeline for food pantries throughout Westchester and beyond. This massive delivery of eggs will make a difference in homes throughout our area at a time when those with limited means or on fixed incomes are struggling to put food on the table. I am thrilled with the outcome.” 

“Great thanks go to Attorney General James for turning this settlement into an opportunity to address the hunger crisis that faces so many in Westchester,” said Assemblymember Steve Otis. “Each year Feeding Westchester reports the staggering increase in families in need of food assistance. With recent cuts to SNAP and other forms of assistance by the federal government, the hunger crisis has only become more dire. The partnership of the Attorney General will help families as well as highlight the need and the vital role Feeding Westchester plays to address it.” 

“Families across Westchester deserve access to affordable, nutritious food without having to bear the burden of illegal practices that drive up everyday costs,” said Assemblymember Gary Pretlow. “I commend Attorney General James for holding companies accountable and ensuring that this settlement provides a direct benefit to the communities that were impacted. The delivery of 140,000 eggs to Feeding Westchester will provide meaningful support to families throughout our region, and I thank Feeding Westchester for its continued work to combat food insecurity and serve our neighbors in need.” 

“It is commendable that our Attorney General has led the efforts to address affordability. Feeding Westchester has a proven record of delivering to the most needy. A joint team effort,” said Assemblymember Nader J. Sayegh.  

“No company should be able to manipulate prices and undermine a fair marketplace at the consumer’s expense,” said Assemblymember MaryJane Shimsky. “This settlement sends a clear message that unlawful conduct has consequences. In addition to paying penalties and making changes to their business practices, it is fitting that Cal-Maine, Versova, and Hickman’s will provide free eggs to our food banks as a way to make amends for their actions.” 

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 Meghan Faux.