Penalty Amount
$3,300,000
New York Attorney General Letitia James announced a multistate settlement with Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch for illegally coordinating to manipulate the Urner Barry egg price index, artificially inflating egg prices. The companies will deliver 53 million eggs to food banks and pay $3.3 million, along with compliance measures.
The three egg producers will deliver 53 million eggs to food banks in 17 participating states, including 4,968,000 eggs to New York, pay $3.3 million to the states, and adopt compliance measures to prevent future illegal coordination.
In-house legal teams should review their supply and procurement contracts for clauses related to pricing mechanisms, especially those referencing benchmark indices like Urner Barry. They should ensure that any coordination with competitors is prohibited, and that contracts include robust antitrust compliance provisions. Additionally, they should review any agreements with food producers or suppliers to verify that pricing practices are transparent and not subject to manipulation.
Entity
Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch
Industry
Other"Cal-Maine Foods (Cal-Maine), Versova/Centrum (Versova), and Hickman’s Egg Ranch (Hickman’s) for years of price fixing."
"the companies will pay $3.3 million to the states"
"illegally coordinated to influence a daily price index for eggs"
"bipartisan multistate settlement"
$3.3M
New York Attorney General Letitia James and a bipartisan multistate coalition, alongside the U.S. Department of Justice, settled with three major egg producers for illegally coordinating to manipulate the Urner Barry daily price index, artificially inflating egg prices for retailers and consumers. The companies will deliver 53 million eggs to food banks nationwide, including 4,968,000 eggs to New York, and pay a combined $3.3 million, along with adopting compliance measures to prevent future violations.
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