Eggs Delivered After AG James’ Investigation into Price Fixing by Major Egg ProducersFood Banks Throughout New York Will Receive Over 4.9 Million EggsNew York Attorney General Letitia James today announced the delivery of more than 280,000 eggs to Foodlink in Rochester 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 found that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under the settlement, 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 23,400 cartons of a dozen eggs to Foodlink, which will distribute them to families throughout the Rochester region, is the second in a series of egg deliveries to food banks statewide.
“It is unconscionable that these businesses colluded against hard-working New Yorkers to raise the price of eggs just to line their own pockets,” said Attorney General James. “The law is clear: price fixing of any kind is not tolerated in New York, or across our nation. I am proud to secure this delivery of eggs for families in need across the Rochester area.”
“We are grateful to receive this delivery of eggs as the cost of groceries, gas, and other basic needs continue to rise and impact the people we serve,” said CEO of Foodlink Julia Tedesco. "This delivery will provide a valuable, protein-rich resource to thousands of our neighbors across 10 counties at a time when 40% of working-aged households in Greater Rochester and the Finger Lakes region are struggling to make ends meet.”
280,000 eggs delivered to Food Link that will be distributed throughout Rochester.
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 deliveries statewide will continue through mid-October.
Attorney General James joined the DOJ in securing this settlement with the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
New York Attorney General Letitia James today announced the delivery of more than 280,000 eggs to Foodlink in Rochester 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 found that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under the settlement, 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 23,400 cartons of a dozen eggs to Foodlink, which will distribute them to families throughout the Rochester region, is the second in a series of egg deliveries to food banks statewide.
“It is unconscionable that these businesses colluded against hard-working New Yorkers to raise the price of eggs just to line their own pockets,” said Attorney General James. “The law is clear: price fixing of any kind is not tolerated in New York, or across our nation. I am proud to secure this delivery of eggs for families in need across the Rochester area.”
“We are grateful to receive this delivery of eggs as the cost of groceries, gas, and other basic needs continue to rise and impact the people we serve,” said CEO of Foodlink Julia Tedesco. "This delivery will provide a valuable, protein-rich resource to thousands of our neighbors across 10 counties at a time when 40% of working-aged households in Greater Rochester and the Finger Lakes region are struggling to make ends meet.”
280,000 eggs delivered to Food Link that will be distributed throughout Rochester.
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 deliveries statewide will continue through mid-October.
Attorney General James joined the DOJ in securing this settlement with the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
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