Eggciting News! Attorney General Bonta Secures Settlement, Delivers 8.9 Million Eggs to California Food Banks

Nationwide settlement with egg producers resolves allegations of an illegal conspiracy that raised the cost of eggs

OAKLAND - California Attorney General Rob Bonta this week, as part of a bipartisan coalition of 17 attorneys general and alongside the U.S. Department of Justice (U.S. DOJ), announced a settlement with egg producers Cal-Maine Foods, Versova, and Hickman's, resolving allegations that they conspired to raise the cost of eggs nationwide. As part of the settlement, the egg producers will pay $3.3 million to the states, agree to refrain from all conduct illegally conspiring to raise egg prices, and will donate over 53 million eggs to food banks in the coalition states, including 8.9 million eggs - or 741,666 egg cartons - that will go directly to California food banks. Due to the very large quantity of eggs, donations will occur over the coming months and years.

"As Californians scrambled to feed their families, three egg producers conspired to act illegally and hatched a plan to raise the cost of eggs nationwide. My office and our federal and state partners stepped in, and as part of our settlement, California food banks from Siskiyou County to San Diego County will receive 8.9 million eggs," said Attorney General Rob Bonta. "I am proud to deliver these eggs to the people of California and grateful for the critical work our food banks do every day to ensure food gets into the hands of Californians in need. My office is committed to cracking down on companies that run afoul of the law and unlawfully conspire to raise prices for Californians who are already struggling with a crisis of affordability. Let me be clear: In California we have zero tolerance for bad eggs."

"The California Association of Food Banks appreciates being given the responsibility to distribute this egg donation to California's network of food banks through our Farm to Family program, as the need for food continues with food banks serving approximately 6 million people per month across the state," said Stacia Hill Levenfeld, CEO of California Association of Food Banks (CAFB). "Protein-rich foods are among the most requested items at food banks, and eggs provide a versatile, nutritious option for families."

BACKGROUND

Consumers have the right to expect the benefits of market competition, which include a selection of the high-quality goods and services at the lowest available prices. The competitive process only works, however, when competitors set prices honestly and independently. When competitors conspire, prices are inflated and consumers are cheated into paying higher prices.

From 2022 to 2025, egg prices nationwide underwent dramatic price increases, and in March 2025, the California Department of Justice (California DOJ) joined U.S. DOJ's effort to investigate whether egg producers conspired to increase egg prices in violation of antitrust laws. The investigation revealed that the parties hatched a plan to manipulate the market for egg pricing by coordinating to submit bids unlikely to be executed and inflated bids in order to drive up egg price quotes published by Urner Barry, a benchmark pricing service widely used in egg supply contracts. For example, in December 2022, Hickman's CEO emailed Versova and Cal-Maine executives urging them to submit "strong bids, early and often" to push prices higher. All three companies then submitted dozens of bids at higher prices, which led to Urner Barry increasing its price quotes. By manipulating the Urner Barry benchmark, the companies artificially inflated the price of eggs paid by retailers and consumers across the nation. Under the settlement, the egg producers agree to pay $3.3 million to the states, donate over 53 million eggs to the state coalition, and critically, agree to halt any price-fixing conspiracy conduct moving forward.

THE IMPACT

More than one in five Californians currently struggle with food insecurity, including 22% of households and 27% of households with children. Already high food prices are predicted to increase by 3.4% over the next year, and a growing number of people are skipping meals or relying on food banks because of rising food costs. The California Association of Food Banks works alongside its 43-member food banks and on behalf of hungry Californians. In 2025, California food banks delivered nearly a billion pounds of food. The California Association of Food Banks will work to distribute the eggs obtained in this settlement to both to its member food banks and food banks outside of its network. Food banks throughout California will receive eggs under the settlement.

In securing this settlement, Attorney General Bonta joins U.S. DOJ and the attorneys general of New York, Arizona, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

The Affordability Response Team

Earlier this month, Attorney General Bonta announced the launch of the Affordability Response Team within California DOJ. Californians are facing an affordability crisis of epic proportions - and many cannot see a light at the end of the tunnel. Housing shortages, skyrocketing grocery prices, rising healthcare and childcare costs, predatory corporate behavior, and the federal government's unstable economic policies are all making it difficult not only to cover the basics, but to enjoy the experiences, vacations, and joys that make life richer for millions across our state. The Affordability Response Team will draw on the knowledge of experts from sections across the department, working together to find, investigate, and go after individuals and corporations deploying unlawful practices that are making life unaffordable for the people of California. To learn more, visit oag.ca.gov/affordability.

Californians who believe they have been affected by anticompetitive conduct can submit a complaint using our Antitrust Complaint Form.