Cal-Maine Foods settles DOJ egg pricing claims

• Cal-Maine Foods (NASDAQ:CALM) agreed to resolve claims from the U.S. Department of Justice and 17 state attorneys general after a 15-month investigation.
• The company will not pay fines or penalties but agreed to donate 30 million eggs and pay $1.5 million to states.
• Cal-Maine said it denies wrongdoing and will implement additional compliance and reporting measures.

Cal-Maine Foods (NASDAQ:CALM) said it has reached an agreement to resolve claims brought by the U.S. Department of Justice and 17 state attorneys general following a 15-month investigation into egg pricing practices.

The inquiry focused on whether egg producers involved in a supply cooperative may have shared bidding information that could influence a price index in markets requiring cage-free eggs.

The company said, “We are pleased that this agreement enables us to move forward so we can devote our full attention to what matters most,” said Cal-Maine Foods president and CEO Sherman Miller.

Cal-Maine said it was a member of the cooperative but exited in May 2024 before the investigation began and unrelated to the DOJ review.

Under the agreement, Cal-Maine said it was not assessed fines or penalties but will implement compliance and reporting measures and contribute 30 million eggs to food banks.

The company also agreed to pay $1.5 million to settle claims from state attorneys general while stating that it denies all allegations and maintains its conduct was lawful.

Cal-Maine said market conditions during the period included supply shocks from avian influenza, COVID-19 disruptions, weather events, and inflation that affected egg prices.