Attorney General James Secures More Than 270,000 Eggs for Capital Region Families

NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 270,000 eggs to Regional Food Bank of Northeastern New York in Latham 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 22,500 cartons of a dozen eggs to Regional Food Bank of Northeastern New York is the ninth in a series of egg deliveries to food banks statewide.

“New Yorkers should never pay more at the grocery store because corporations have manipulated the market,” said Attorney General James. “After investigating these major egg producers for colluding to inflate prices, we’re ensuring New Yorkers in need get justice. Thank you to Regional Food Bank of Northeastern New York for partnering with our office to ensure the families they serve receive these free eggs.”

"This delivery of 270,000 eggs will be available today for our more than 1,000 partner agencies throughout our 23-county region which stretches from the lower Hudson Valley to the Canadian border," said Tom Nardacci, CEO of Regional Food Bank. "At a time when the charitable food industry, across New York and the nation, is feeling the squeeze of restricted federal funding, this significant egg delivery is a tremendous support for those struggling with food insecurity. We are profoundly thankful to Attorney General James, who, through this settlement, is not only protecting New York taxpayers, but also ensuring this food is getting to our neighbors in need."

More than 270,000 Eggs delivered to Regional Food Bank of Northeastern New York that will be distributed throughout the Capital Region

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 1.8 million eggs have been distributed so far to food banks in Brooklyn, Rochester, Syracuse, the Southern Tier, the Bronx, Westchester, Buffalo, and on Long Island. Deliveries statewide will continue through October.

“More and more of our neighbors are relying on food assistance to weather the worst affordability crisis since 2008,” said Senator Patricia Fahy. “The Regional Food Bank has reported an unprecedented increase in the need for emergency food assistance, resulting in longer lines at food pantries and soup kitchens. Providing 270,000 eggs to the Regional Food Bank as part of the effort to combat price fixing by major egg producers is the exact kind of emergency food assistance New Yorkers need right now while the federal administration ignores working-class and low-income families’ needs with cuts to programs like SNAP. Corporations inflated the price of eggs to increase their profits, and I want to thank Attorney General James for recognizing the problem, investigating it, and stepping up to deliver for the people of New York with real assistance.”

“Every family has felt the impact of higher grocery prices, and it is very troubling when those costs are driven up by illegal price fixing,” said Assemblymember John T. McDonald III. “This settlement provides accountability that directly benefits the people we represent. The delivery of 270,000 eggs to the Regional Food Bank will help put food on the tables of families throughout our region. I thank Attorney General James for pursuing this matter and the Regional Food Bank for the essential work they do every day to support our communities.”

“Families should never be forced to pay even more because companies illegally manipulated prices,” said Assemblymember Angelo Santabarbara. “This settlement holds those companies responsible and turns their wrongdoing into real help for families across our region. The eggs delivered to the Regional Food Bank will help fill the shelves of local food pantries and provide healthy meals for children, seniors and families in need. At a time when many households are working hard to make ends meet, this food will make a real difference. I thank the Regional Food Bank and its local partners for making sure it reaches communities throughout our area.”

“I am grateful to Attorney General James for aggressively pursuing these kinds of monopolistic, anti-competitive practices and for securing a resolution in this case that will make a real difference for so many New Yorkers," said Assemblymember Carrie Woerner. “Eggs are packed with protein, vitamins and minerals that help support brain function, immunity, and overall health. I’m so pleased that this significant donation of a small, but nutrient-dense food will have such a major impact on the physical and economic health of communities across our state.”

“Eggs are a basic staple for families, but they are also an expense that can add up quickly at the grocery store,” said Albany County Executive Daniel P. McCoy. “Getting 270,000 eggs to the Regional Food Bank means thousands of families will have access to a healthy source of protein without having to make another difficult choice at the checkout counter. I thank Attorney General James for securing this settlement and the Regional Food Bank for putting these eggs directly into the hands of people who need them.”

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.