Penalty Amount
$3,300,000
New York Attorney General Letitia James announced a bipartisan multistate settlement with major egg producers Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch for illegally coordinating to influence a daily price index for eggs, artificially inflating prices for retailers and consumers nationwide. The companies will deliver 53 million eggs to food banks across 17 participating states (including 4,968,000 eggs to New York) and pay a combined $3.3 million. The companies will also adopt compliance measures to prevent future illegal coordination. Note: This is an antitrust/price-fixing case, not a privacy enforcement action.
The three egg producers will deliver a total of 53 million eggs to food banks and nonprofit organizations across 17 participating states, pay a combined $3.3 million to the states, and adopt compliance measures to prevent future illegal coordination. New York will receive 4,968,000 eggs distributed through Feeding New York. Deliveries will continue through October.
While this is an antitrust/price-fixing case rather than a privacy enforcement action, in-house teams should review their supply and procurement contracts for benchmark pricing provisions, particularly any that reference Urner Barry or similar pricing indices. Companies should ensure their vendor agreements include robust compliance certifications and audit rights to verify that pricing data provided by suppliers is accurate and not manipulated. Additionally, procurement contracts should include representations and warranties regarding compliance with antitrust and competition laws, as well as indemnification provisions for any losses resulting from illegal price coordination. This case also highlights the importance of including compliance program requirements and cooperation clauses in settlement agreements and consent decrees.
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)"
"the companies will pay $3.3 million to the states"
"a bipartisan multistate settlement"
"illegally coordinated to influence a daily price index for eggs"
"the three egg producers will deliver 53 million eggs to food banks in the 17 participating states"
$3.3M
New York Attorney General James announced the delivery of eggs to food banks as part of a multistate settlement with Cal-Maine Foods, Versova/Centrum, and Hickman's Egg Ranch for price fixing. The companies illegally coordinated to manipulate the Urner Barry egg price index, artificially inflating prices. They will deliver 53 million eggs to food banks and pay $3.3 million.
$3.3M
New York Attorney General James announced a multistate settlement with three major egg producers for illegally coordinating to influence a daily egg price index, artificially inflating prices for consumers. The companies will deliver 53 million eggs to food banks and pay $3.3 million, along with adopting compliance measures.
$3.3M
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.
$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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