Utah will receive approximately 125,000 cartons of eggs as part of a proposed settlement following allegations that three major producers conspired to illegally drive up prices across Utah and 16 other states. The Utah attorney general’s office announced Tuesday that the settlement addresses a scheme occurring between June 2002 and March 2025.
Allegations of Price Fixing
The Utah attorney general’s office announced Tuesday that the state has joined the U.S. Department of Justice and other affected states in filing a complaint and proposed final judgment against Cal-Maine Foods, Inc., Versova Holdings, and Hickman’s Family Farms. The legal action follows a joint federal and state investigation into an alleged antitrust conspiracy.
Evidence of Collusion
According to the news release from the attorney general's office, the companies are accused of colluding to raise egg prices by sharing competitively sensitive information and submitting coordinated bids to Urner Barry, a market price index. The complaint alleges that producers submitted bids with the specific intention of artificially raising market prices while regularly communicating pricing plans and bidding strategies with their competitors.
Coordinated Bidding Tactics
The lawsuit details specific communications used to manipulate the market. In October 2022, a Cal-Maine executive reportedly texted the CEO of Hickman’s stating, "We are bidding up. Let's hold it today." By the end of that day, bids from Hickman’s and Cal-Maine accounted for more than half of the total bids submitted to the index, and Urner Barry’s price quotations remained steady.
Impact on Utah Families
The complaint further alleges that in December 2022, following an increase in price quotations for large white shell eggs across the country, the CEO of Hickman’s sent messages to other executives celebrating the price hikes. The message noted that "egg prices [were] hitting records" and included a congratulatory remark stating, "great job in the northwest today!"
Settlement Terms and Relief
Attorney General Derek Brown noted that the price manipulation had a direct impact on local residents. "Utah families were already stretched thin, and inflated egg prices stretched them further," Brown said. He added that the settlement is designed to change how these companies conduct business while providing direct relief through food banks.
Financial and Regulatory Penalties
The settlement includes the distribution of the 125,000 cartons of eggs to Utah food banks through nonprofit organizations, though a spokesperson for the attorney general's office stated that the specific logistics for this distribution are still being finalized. Additionally, Utah will receive $93,000 intended for antitrust enforcement.
Future Compliance Requirements
The companies involved are now barred for the next five years from communicating with competitors regarding bids, supply, or pricing, and they are prohibited from influencing competitor bidding. Furthermore, the producers must submit annual compliance certifications under penalty of perjury. In total, the participating states will receive over 53 million eggs and $3.3 million in monetary recovery.
