Attorney General James Secures More Than 140,000 Eggs for Long Island Families
NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 140,000 eggs to Island Harvest in Suffolk County 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 alleged that this coordination artificially increased prices for retailers and consumers throughout the country for years. Under a settlement with the states, 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 11,700 cartons of a dozen eggs to Island Harvest is part of a series of deliveries to food banks statewide.
“Families throughout New York count on eggs for an affordable and balanced diet,” said Attorney General James. “After investigating the corporations behind an illegal effort to inflate egg prices, my office is helping deliver millions of eggs to food banks across the state. I thank Island Harvest for their work to deliver these eggs to Long Island families.”
“Eggs are a highly nutritious, versatile, and wholesome food item that is frequently requested by the people we serve,” said Randi Shubin Dresner, president and CEO of Island Harvest Food Bank. “We are grateful to Attorney General James for considering the state’s network of food banks while negotiating this settlement in such a thoughtful way. The eggs will be distributed among our network of food pantries and emergency feeding programs to benefit families across Nassau and Suffolk counties.”
More than 140,000 eggs delivered to Island Harvest that will be distributed throughout Long Island
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. To date more than 1.5 million eggs have been distributed so far to food banks in Brooklyn, Rochester, Syracuse, the Southern Tier, the Bronx, Westchester County, and Buffalo. Deliveries statewide will continue through October.
“Colluding to artificially increase the price of food hurts all New Yorkers, but especially those who have the least,” said Senator Monica Martinez. “This settlement with liable egg producers will help put food on the tables of Long Islanders who need it most. I thank Attorney General James for holding these companies accountable and ensuring this settlement provides relief to those most directly hurt by their actions.”
“Long Island families are feeling the pressure of rising grocery costs and the increasing price of everyday essentials,” said Deputy Speaker Phil Ramos, Chair of the Long Island Delegation of the Assembly. “No family should have to pay more because companies engage in illegal business practices. I thank Attorney General James for holding these companies accountable and for turning this settlement into meaningful relief for New Yorkers in need. Getting nutritious food to Long Island food banks and nonprofit organizations is a common-sense way to help families and communities.”
“It’s appalling that companies are engaging in this kind of greedy behavior at a time when everyday working families are struggling to make ends meet,” said Assemblymember Charles Lavine. “I applaud Attorney General James for fighting for New Yorkers and holding them accountable.”
“I am pleased that the eggs secured through this settlement will be distributed to food pantries across Long Island,” said Assemblymember Tommy John Schiavoni. “As a member of the Assembly Agriculture Committee, I understand the importance of supporting our agricultural industry, while ensuring that families have access to fresh, nutritious food. I commend Attorney General James for making sure that these eggs directly benefit communities across New York state.”
“I appreciate Attorney General James’ commitment to holding companies accountable and ensuring that this settlement directly benefits those impacted in the most egregious way,” said Assemblymember Michaelle C. Solages. “New York receiving over four million eggs will provide valuable support to food banks across the state and the communities most in need.”
“It’s no secret that grocery prices are hitting levels never seen before, making it even harder for working families to make ends meet,” said Suffolk County Legislature Minority Leader Jason A. Richberg. “Companies coordinating to fix prices on something as vital as eggs while folks are stretching their paychecks to afford the essentials is truly shameful. With demand growing and our local pantries and food banks under increased strain not seen in decades, any and all help is welcome. As always, thank you to Attorney General James for always looking out for New Yorkers!”
“At a time when soaring costs are already stretching family budgets to the absolute limit and federal hunger relief programs like SNAP have been slashed, it is even more important than ever to root out and dismantle schemes that seek to manipulate the cost of daily essentials like eggs,” said Nassau County Legislature Minority Leader Delia DeRiggi-Whitton. “As someone who raised three daughters as a single mother, I applaud Attorney General James for protecting consumers and securing a settlement that delivers real and immediate relief to families across the Empire State.”
“As the cost of nutritional staples like eggs continue to soar, it is deeply troubling to know that part of the reason was directly attributable to market manipulation at the hands of unscrupulous actors,” said Nassau County Legislator Scott M. Davis. “I applaud Attorney General James for upholding the law and reaching a settlement that will deliver direct assistance for families in need here in Nassau County and across New York.”
“At a time when grocery costs are continuing to rise, and families are struggling to put daily essentials on the table, it is simply appalling to know that these major corporations conspired against themselves to rig the market against consumers in the name of ill-begotten windfall profits,” said Nassau Legislator Arnold W. Drucker. “I applaud Attorney General James and her office for breaking up this scheme and delivering relief that will directly aid local families in their hour of need.”
“We are grateful to Attorney General James for securing this settlement and delivering meaningful relief to hardworking families across Long Island,” said Nassau County Legislator Debra Mulé. “At a time when the rising cost of groceries continues to strain household budgets, these eggs will help put nutritious food on the table for families who need it most. We thank the Attorney General for standing up for consumers and ensuring this settlement directly benefits New Yorkers.”
“Grocery prices have been squeezing working families for years, and now we know that some of that pain was manufactured,” said Nassau County Legislator Olena Nicks. “I am grateful to Attorney General James and her office for fighting for our residents at a moment when they can least afford to be taken advantage of. This settlement puts food directly into the hands of Long Island families, and I want to thank the food banks and volunteers who will make sure every one of these eggs reaches someone who needs it.”
“I’m grateful to Attorney General James for ensuring this settlement provides meaningful support for families in our communities,” said Nassau County Legislator Cynthia Nuñez. “These eggs will help our local food banks and pantries provide fresh, nutritious food to families across Nassau and Suffolk, making a real difference for neighbors facing food insecurity.”
“By upholding the law and protecting fairness in the marketplace, this settlement will ensure that the cost-of-living crisis is not further exacerbated by acts of collusion,” said Nassau County Legislator Viviana L. Russell. “I appreciate the tireless efforts of Attorney General James and her team, work which will yield essential resources and awareness in the fight to end hunger in New York and our nation.”
“Families across Nassau County and New York have already been struggling with the rising cost of groceries, and no company should be allowed to make that burden heavier by illegally manipulating prices,” said Nassau County Legislator Carrié Solages. “I commend Attorney General James and her partners for holding these egg producers accountable and securing meaningful relief. The nearly five million eggs coming to New York food banks will help put food directly on the tables of families who need it most. This settlement sends a clear message: profiting at the expense of hardworking families will not go unchecked.”
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 Meghan Faux.
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