Texas Attorney General Ken Paxton has reached settlements with three of the nation’s largest egg producers that will require the companies to donate more than 7 million eggs to food banks across the state, his office announced.
The agreements with Cal-Maine Foods, Centrum/Versova, and Hickman’s Egg Ranch resolve antitrust claims brought by 17 state attorneys general alleging the producers conspired to inflate egg prices between 2022 and 2025, according to a press release issued by the Office of the Attorney General.
Settlement Requires Millions of Egg Donations
Under the terms, the three companies will collectively donate more than 53 million eggs to food banks and community organizations across the participating states, including the more than 7 million eggs designated for Texas. The companies will also pay a combined $3.3 million to the states.
Paxton’s office said it will work with the settling companies in the coming months to distribute the eggs to participating Texas food banks.
Companies Allegedly Conspired To Raise Prices
An investigation conducted with the U.S. Department of Justice and partner states found that the companies coordinated their bidding to influence daily egg price quotes published by Urner Barry, a benchmark pricing service used in supply contracts with grocery retailers and the food service industry, according to the release.
In one instance cited by the attorney general’s office, a Hickman’s executive urged executives at Cal-Maine and Versova to submit aggressive, repeated bids to drive prices higher. The three companies then placed numerous elevated bids, prompting Urner Barry to raise its price quotes and artificially inflate costs paid by Texas consumers, the release stated.
Companies Must Adopt Antitrust Compliance Measures
The settlements also require the companies to end the conduct and adopt safeguards against future violations. Each producer must appoint a compliance officer to oversee adherence to the agreement and report any violations to the Office of the Attorney General, the U.S. Department of Justice, and other participating states.
Part of Broader Antitrust Enforcement Effort
“I will continue to hold any corporation accountable if they violate our laws to raise prices on Texans,” Paxton said. “These three major egg producers conspired to profit off antitrust violations that ultimately raised the prices of eggs for Americans. Now, they will have to donate over 7 million eggs to food banks across Texas. This settlement serves as another reform that we have secured to prevent price gouging and unlawful conduct that hurts Americans and their wallets.”
The announcement follows an earlier settlement with Cal-Maine Foods that included a donation of roughly 2,160,000 eggs to Texas food banks, as well as a prior resolution with Agri Stats, Inc. over the alleged exchange of confidential cost and pricing information. Paxton’s office also recently launched an investigation into potential anticompetitive behavior among the nation’s largest beef meatpackers.
