US Justice Department prepares antitrust case against egg producers over pricing
Egg prices and bird flu-related shortages fuel wider legal and regulatory scrutiny
USA – The US Justice Department is preparing an antitrust lawsuit targeting several major egg producers, including Cal-Maine Foods and Versova, over allegations that they coordinated pricing, according to a Reuters report citing the Wall Street Journal and people familiar with the matter.
Following the report, shares of Cal-Maine Foods dropped nearly 3% in after-hours trading as investors reacted to the potential legal action.
Rising legal pressure on egg sector
The proposed case comes amid multiple class-action lawsuits filed by consumers who accuse egg producers of coordinating prices in response to sharp increases in food costs, particularly for eggs.
The legal pressure coincides with disruptions in the US poultry sector caused by repeated bird flu outbreaks that have led to the culling of millions of laying hens and reduced supply.
Separately, the US Producer Price Index rose to a seven-month high in February, with overall goods prices increasing by 1.1% as higher costs in services and commodities fed into inflationary pressure.
Within that data, egg prices recorded a 93.6% increase after a steep 63.9% decline in January when earlier pricing distortions reversed.
Cal-Maine Foods has previously disclosed that it is cooperating with a Justice Department inquiry into possible price-fixing following a civil investigative demand, while noting that the scope and outcome of the probe remain unclear.
Neither Cal-Maine Foods nor privately held Versova has issued an immediate public response to requests for comment regarding the latest allegations.
The lawsuit claims that egg producers may have shared pricing signals through an industry benchmarking service that allowed them to align price movements across the market.
Despite the escalation, reports indicate that regulators and the companies involved could still reach a settlement that would prevent a full trial.
In a broader enforcement effort, the Justice Department is also examining potential antitrust concerns in markets for beef, fertiliser, and crop seeds.
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