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NY attorney general says she cracked egg scheme that raised prices


By

Karen Yi

Published Jul 1, 2026


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US-ECONOMY-FOOD-GROCERIES-SUPERMARKET-LIFESTYLE Egg products are displayed in a local supermarket in the Sugar Hill neighborhood of the Manhattan borough of New York City on April 9, 2026.

 

Photo by CHARLY TRIBALLEAU / AFP via Getty Images


By

Karen Yi

Published Jul 1, 2026


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Three egg producers accused of illegally whipping up egg prices will shell out more than 50 million eggs to charity and pay several states, including New York, a total of $3.3 million, New York Attorney General Letitia James said.

James said the scheme was hatched when egg prices reached record highs — and consumers across the city scrambled to afford eggs at up to $11 a carton.

The U.S. Department of Justice and 17 states said Cal-Maine Foods, Versova and Hickman’s Egg Ranch colluded to raise prices from June 2022 to March 2025 by secretly communicating with each other to influence daily egg prices published by a pricing service. The three companies agreed to a settlement but did not admit wrongdoing.

“When powerful corporations collude behind the scenes to raise prices, working families suffer the costs,” James, who led the investigation to crack the case, said in a statement.

“These egg producers manipulated the market to squeeze even more profit out of consumers and businesses. By shutting this scheme down and delivering millions of eggs to those in need, we’re sending a clear message that companies will not get away with illegal price hikes in New York.”

Sherman Miller, president and CEO of Cal-Maine Foods, said in a statement the company denies all wrongdoing and that the claims were “baseless.” He said the agreement allows the company to move forward.

“As farmers, we face extreme variability across supply and demand in dynamic and often unpredictable markets, and the ability to navigate that delicate balance is what makes farmers so valuable to U.S. food security,” Miller said in a statement.

“The period reviewed by the DOJ was a particularly challenging time. Temporary supply shocks, including in connection with multiple outbreaks of avian influenza, the COVID-19 pandemic, weather and other market dynamics — compounded by high inflation at the time — caused egg prices to surge periodically over the past five years,” he added.

A spokesperson for MTQ USA, which acquired Hickman’s in late 2025, said the alleged conduct predated their ownership but that the company was “committed to complying with all applicable laws and regulations and to conducting business with the highest standards of integrity.”

Versova did not respond to requests for comment.

Egg prices reached a high in 2025 amid a bird flu outbreak that forced farmers to slaughter their chickens. According to the U.S. Bureau of Labor Statistics, prices climbed to $6.23 in March 2025.

As part of the settlement, the companies agreed to adopt new compliance measures and provide 53 million eggs at their own expense to food pantries and nonprofits in each of the 17 states.

This story has been updated with comment from two of the egg producers.

Tagged

economy

new york city

new york state

public safety


Karen Yi

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Karen Yi covers homelessness and poverty. She joined the WNYC and Gothamist newsroom in 2020. Before that, Karen covered Newark for the Star-Ledger and spent almost a decade working for newspapers in New Jersey and Florida. She grew up in Miami and has a dog named Cashew. Got a tip? Email [email protected] or Signal 917-589-1460.

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Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


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