‘Zero Tolerance for Bad Eggs’: California Attorney General Announces Settlement with Egg Producers Accused of Hatching Plan to Puff Up Prices 

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This article was underwritten in part by the Mickey Flacks Journalism Fund for Social Justice, a proud, innovative supporter of local news. To make a contribution go to sbcan.org/journalism_fund.

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Foodbank of Santa Barbara County is one of hundreds of food banks across the country that will receive an “egg payout” from three of the country’s major producers. California Attorney General Rob Bonta announced in a press release on Tuesday that he, alongside attorneys general from 16 other states and the U.S. Department of Justice, had settled a lawsuit with Cal-Maine Foods, Versova, and Hickman’s Egg Ranch. The lawsuit alleges that the companies artificially inflated the price of eggs from 2022 to 2025. 

“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,” Bonta said in the press release. 

In 2022, avian flu broke out, making its way to flocks of hens. The highly contagious pathogen and the method to control its spread — culling — led to the death of more than 60 million birds between 2022 and 2024. With a smaller supply, the price of eggs shot up, outpacing inflation. Between January 2022 and March 2025, the price of eggs went from $1.93 for a dozen large Grade-A eggs to $6.23 for that same dozen, according to data from the Bureau of Labor Statistics’ national averages. In Santa Barbara, restaurants in the area began posting notices for raised prices on egg dishes due to the cost. 

But the flu was not the only culprit for high prices, the U.S. Justice Department argued. The lawsuit filed against Cal-Maine, Versova Holdings, and Hickman’s alleges that the three companies deliberately conspired to raise the price of eggs further. Cal-Maine and Hickman’s are further accused of working to keep prices high. 

Together, these three companies control a large share of the market. Cal-Maine is the biggest producer of eggs in the country, and Versova (a combination of Centrum Valley Holdings, Versova Management Cooperative, and Versova Holdings) and Hickman’s both control laying flocks in the tens of millions. 

According to reporting from CNBC, Cal-Maine and Versova have both publicly denied these allegations. Hickman’s has since been acquired by international producer Mantiqueira; CNBC reported that Mantiqueria U.S.A. said it would comply with all applicable laws and regulations. 

Egg producers with surplus or a shortage of eggs can purchase eggs to help them fulfill their contract with retailers, like grocery stores. They do that through trade on an “egg exchange,” such as Egg Clearinghouse Inc., or through “egg brokers.” 

Market analyst and reporting agency Urner Barney calculates the daily price of eggs in part by examining what companies are offering to pay for eggs on the Egg Clearinghouse Inc exchange. That daily quotation from Urner Barney is often baked into the contracts for egg sales between producers and retailers — if Urner Barney’s quote is higher, the retailers will pay more.

The Justice Department’s lawsuit says that Cal-Maine, Hickman’s, and Versova conspired to repeatedly flood the Egg Clearinghouse with very high bids in the hours leading up to Urner Barney publishing the price of eggs, effectively making that price higher. The strategic bid allegedly occurred repeatedly over years and was coordinated through calls, emails and texts, with the complaint quoting some of these messages.

Meanwhile, the value of egg production grew — between 2023 and 2024, the U.S. Poultry and Egg Association reported the industry’s value increased by nearly 20 percent. Cal Maine saw stock trading values more than triple from 2022 to 2025. 

The price of eggs peaked in March 2025. The complaint says that the named egg producers found out about the investigation the month prior. Since then, the price of eggs has dropped significantly. By November, it was down to $2.86 per dozen according to the Bureau of Labor Statistics. The World Health Organization writes that avian flu levels were peaking in the northern hemisphere at that time. 

In Tuesday’s press release, Attorney General Bonta said his office was committed to cracking down on companies that illegally raise prices. 

“Let me be clear: In California, we have zero tolerance for bad eggs,” he said. 

To comply with the settlement terms, the three companies will pay a total of $3.3 million. They will also have to donate 53 million eggs to food banks around the country. California will see nearly nine million of those eggs, with the California Association of Food Banks distributing them in the coming months and years. 

Foodbank of Santa Barbara County, the county’s biggest nonprofit that targets food insecurity, anticipates receiving at least four pallets, or about 34,560 eggs. The organization said it typically goes through two pallets per week, so the payout won’t be feeding people’s breakfast needs for a long stretch of time. 

Still, Foodbank said eggs, which are healthy and protein-rich, are a staple for households in the community and are frequently asked after. They won’t go to waste. 

The settlement comes at a time when more people in Santa Barbara and across the country are facing food insecurity. As the work requirements for the country’s largest nutrition assistance program, SNAP, tighten, more than 5,500 people in the county are at risk of losing the federal benefit, which helps them afford groceries. Foodbank has increased its food purchase budget to $2.5 million, anticipating an increased need.