Attorney General James Secures More Than 280,000 Eggs for Rochester Families

NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 280,000 eggs to Foodlink in Rochester as part of a bipartisan multistate settlement with Cal-Maine Foods (Cal-Maine), Versova/Centrum (Versova), and Hickman’s Egg Ranch (Hickman’s) for years of price fixing. A multistate investigation led by the Office of the Attorney General (OAG) alongside the U.S. Department of Justice (DOJ) and 16 other states revealed that Cal-Maine, Versova, and Hickman’s illegally coordinated to influence a daily price index for eggs. The investigation found that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under the settlement, the three egg producers will deliver 53 million eggs to food banks in the 17 participating states, including 4,968,000 eggs to New York. In addition to the egg deliveries, the companies will pay $3.3 million to the states and make changes to their practices to prevent future violations of the law. The delivery of 23,400 cartons of a dozen eggs to Foodlink, which will distribute them to families throughout the Rochester region, is the second in a series of egg deliveries to food banks statewide.

“It is unconscionable that these businesses colluded against hard-working New Yorkers to raise the price of eggs just to line their own pockets,” said Attorney General James. “The law is clear: price fixing of any kind is not tolerated in New York, or across our nation. I am proud to secure this delivery of eggs for families in need across the Rochester area.”

“We are grateful to receive this delivery of eggs as the cost of groceries, gas, and other basic needs continue to rise and impact the people we serve,” said CEO of Foodlink Julia Tedesco. "This delivery will provide a valuable, protein-rich resource to thousands of our neighbors across 10 counties at a time when 40% of working-aged households in Greater Rochester and the Finger Lakes region are struggling to make ends meet.” 

280,000 eggs delivered to Food Link that will be distributed throughout Rochester

Attorney General James and the coalition’s investigation found that beginning at least as early as 2022, these three major egg producers secretly coordinated their bidding strategies to influence the daily egg price quotes published by Urner Barry, a benchmark pricing service widely used in egg supply contracts. The companies submitted sham bids at artificially inflated prices to distort the market, then withdrew those bids, intentionally aiming to raise the Urner Barry price quotes. By manipulating the Urner Barry benchmark, the companies artificially inflated the price of eggs paid by retailers and consumers nationwide.

As a result of settlements with OAG and the coalition of states, the three companies will deliver a total of 53 million eggs to food banks and nonprofit organizations across the participating states and pay a combined $3.3 million. Under a separate settlement with DOJ and the coalition of states, the companies will also adopt compliance measures to prevent future illegal coordination. New York will receive 4,968,000 eggs, all of which will be distributed through Feeding New York, the statewide network overseeing New York’s food banks. The first truckload of 280,800 eggs was delivered to City Harvest in Brooklyn, and deliveries statewide will continue through mid-October.

“At a time when too many families are feeling the strain of higher grocery prices, every effort to put healthy, affordable food on the table makes a difference,” said Congressman Joe Morelle. “I'm grateful to Attorney General James and all the partners involved in making this donation possible, and I'm glad these eggs will help support families across our community who need them most.” 

“No New Yorker should have to struggle to afford essential grocery staples at a time when it's already too hard to make ends meet,” said Senator Samra Brouk. “It is unconscionable that companies engaged in illegal price fixing to raise prices on eggs. Thank you, Attorney General James, for holding greedy corporations accountable and protecting our working families.” 

“At a time when New York families are facing an affordability crisis, Attorney General James is standing up for consumers,” said Senator Jeremy Cooney. “Eggs are a basic grocery staple, and it’s unacceptable for bad actors to exploit working families. I’m grateful to the Attorney General for her continued work to hold companies accountable – cracking down on price fixing and ensuring food pantries have access to the essential supplies our communities rely on.” 

“Foodlink and its network of community partners do incredible work every day to ensure families throughout the Finger Lakes have access to healthy, nutritious food,” said Senator Pamela Helming. “This donation of more than 280,000 eggs will further strengthen those efforts and provide a nutritious, protein-rich staple to local families. I am grateful to Foodlink’s staff, volunteers, and partners for their continued commitment to serving our neighbors and strengthening our communities.” 

“No family should be priced out of basic nutrition to boost corporate profits,” said Assemblymember Harry B. Bronson. “Thank you, Attorney General James, for standing up for working people and putting a stop to unlawful price gouging at the grocery store. I am gratified to see that 280,000 eggs will be delivered to our community through Foodlink, helping people put food on the table and make ends meet.” 

“Every family should be able to afford the groceries they need without worrying that companies are working behind the scenes to illegally drive up prices,” said Assemblymember Sarah Clark. “I’m glad to see the Rochester community, and communities across the state, directly benefiting from this settlement, with hundreds of thousands of eggs headed to Foodlink to help the families who need them most. I’m grateful to Attorney General James for standing up for New Yorkers, holding these companies accountable, and making sure this settlement delivers real relief in communities across our state.” 

“I am incredibly grateful to Attorney General James and her office for their efforts to hold greedy corporate bad actors accountable,” said Assemblymember Jen Lunsford. “New Yorkers, who rely on eggs to feed their families, were overpaying for years and were lied to about the reason. The data clearly shows us that big corporations, which faced genuine challenges during COVID that resulted in necessary price hikes, never adjusted those prices back down after the challenges subsided. And in the case of these large-scale egg producers, companies illegally coordinated to keep prices inflated to line their own pockets on the backs of New York families. We will not stand idly by while big business picks our pockets. Today’s donation of eggs to Foodlink is a meaningful step towards rectifying this wrong.” 

“At a time when so many in our community are struggling with food insecurity, holding producers accountable who manipulate market prices is critical,” said Assemblymember Demond Meeks. “Access to affordable, nutritious food is a basic necessity, and no company should be allowed to boost profits on the backs of everyday working people. In addition, securing nearly five million eggs for New York food banks, including thousands right here in Rochester through Foodlink, is a meaningful victory. Today’s announcement sends a clear message that illegal price-fixing schemes will not be tolerated in New York state. I am grateful to Attorney General James for taking decisive action to protect consumers, advocate for our families, and turn corporate misconduct into tangible support for our local food pantries.” 

Joining Attorney General James and DOJ in securing this settlement were the attorneys general of Arizona, California, Colorado, Connecticut, Florida, Hawaii, Iowa, Maryland, Minnesota, North Carolina, Ohio, Pennsylvania, Texas, Utah, Vermont, and Wisconsin.

For New York, this matter was handled by Assistant Attorneys General Isabella Pitt and James Yoon, Senior Enforcement Counsel Michael D. Schwartz, and Legal Fellow Amanda McBain of the Antitrust Bureau, and with the assistance of Assistant Attorney General John P. Figura of the Consumer Frauds and Protection Bureau, under the supervision of Bureau Chief Elinor R. Hoffmann and Deputy Bureau Chief Amy McFarlane. The Antitrust Bureau is part of the Division of Economic Justice, overseen by Chief Deputy Attorney General Christopher D’Angelo and First Deputy Attorney General Jennifer Levy.