US DOJ, states reach agreement with egg producers on price manipulation investigation

June 29 - The U.S. Justice Department and a coalition of 17 states on Monday reached a settlement with three of the country's major egg producers, including Cal-Maine Foods, over an investigation into alleged manipulation of egg prices, the New York state attorney general's office said.

Cal-Maine Foods, Versova and Hickman's Egg Ranch will pay $3.3 million in total and also donate 53 million eggs to food banks and nonprofit organizations across the participating states, New York Attorney General Letitia James' office said.

Here are more details:

• Cal-Maine Foods said in a separate statement that it would pay $1.5 million in total to states and donate 30 million eggs to food banks and non-profits across the country.

• The company denied all wrongdoing and said it was not assessed any fines or penalties, adding that it has agreed to implement certain compliance and reporting measures as part of the agreement.

• Versova and Hickman's Egg Ranch did not respond to a request for comment outside regular business hours.

• The New York AG's statement said the investigation revealed that the companies "illegally coordinated for years to influence a daily price index for eggs, which artificially increased prices for retailers and consumers throughout the country."

• The statement added that all three companies must end their coordination to manipulate prices, adopt compliance measures to prevent future violations, and fully cooperate with oversight by the states. REUTERS