Eggs Delivered After DOJ Investigation into Price Fixing by Major Egg ProducersFood Banks Throughout New York Will Receive Over 4.9 Million EggsNew York Attorney General Letitia James announced the delivery of more than 140,000 eggs to Food Bank of Central New York in Syracuse 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 Central New York is the fourth in a series of egg deliveries planned to food banks statewide.
“When businesses conspire to raise the price of everyday grocery items, shoppers across the country suffer,” said Attorney General James. “As a result of our investigation, we have secured a major delivery of eggs to Central New York families in need. I will continue to go after any company that seeks to take advantage of New Yorkers by illegally inflating prices.”
“Eggs are an important source of protein and one of the most requested items among the families and neighbors we serve. We are grateful to Attorney General James for securing this delivery,” said Andrew Katzer, Director of Procurement at Food Bank of Central New York. “These eggs will be distributed through our network of community partners, helping provide nutritious food to households throughout Central and Northern New York.”
140,000 eggs delivered to Food Bank of Central New York in Syracuse that will be distributed throughout Central New York
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. In addition to the Central New York delivery, more than 140,000 eggs were delivered to Food Bank of the Southern Tier in Elmira earlier today. Deliveries statewide will continue through mid-October.
Joining the DOJ in securing this settlement were the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
New York Attorney General Letitia James announced the delivery of more than 140,000 eggs to Food Bank of Central New York in Syracuse 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 Central New York is the fourth in a series of egg deliveries planned to food banks statewide.
“When businesses conspire to raise the price of everyday grocery items, shoppers across the country suffer,” said Attorney General James. “As a result of our investigation, we have secured a major delivery of eggs to Central New York families in need. I will continue to go after any company that seeks to take advantage of New Yorkers by illegally inflating prices.”
“Eggs are an important source of protein and one of the most requested items among the families and neighbors we serve. We are grateful to Attorney General James for securing this delivery,” said Andrew Katzer, Director of Procurement at Food Bank of Central New York. “These eggs will be distributed through our network of community partners, helping provide nutritious food to households throughout Central and Northern New York.”
140,000 eggs delivered to Food Bank of Central New York in Syracuse that will be distributed throughout Central New York
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. In addition to the Central New York delivery, more than 140,000 eggs were delivered to Food Bank of the Southern Tier in Elmira earlier today. Deliveries statewide will continue through mid-October.
Joining the DOJ in securing this settlement were the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, New York, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.
No comments:
Post a Comment