Attorney General James Secures More Than 140,000 Eggs for Central New York Families
NEW YORK – New York Attorney General Letitia James today announced the delivery of more than 140,000 eggs to Food Bank of Central New York in Syracuse 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 Food Bank of Central New York is the fourth in a series of egg deliveries planned to food banks statewide.
“When businesses conspire to raise the price of everyday grocery items, shoppers across the country suffer,” said Attorney General James. “As a result of our investigation, we have secured a major delivery of eggs to Central New York families in need. I will continue to go after any company that seeks to take advantage of New Yorkers by illegally inflating prices.”
“Eggs are an important source of protein and one of the most requested items among the families and neighbors we serve. We are grateful to Attorney General James for securing this delivery,” said Andrew Katzer, Director of Procurement at Food Bank of Central New York. “These eggs will be distributed through our network of community partners, helping provide nutritious food to households throughout Central and Northern New York.”
140,000 eggs delivered to Food Bank of Central New York in Syracuse that will be distributed throughout Central New York
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 on Tuesday, 280,800 eggs were delivered to Foodlink in Rochester. In addition to the Central New York delivery, more than 140,000 eggs were delivered to Food Bank of the Southern Tier in Elmira earlier today. Deliveries statewide will continue through mid-October.
“New York’s action to shut down illegal price manipulation in the egg industry is a major win for consumers, small businesses, and families who have struggled with unjustified cost increases,” said Onondaga County Executive Ryan McMahon. “Delivering millions of eggs directly to food banks and community organizations ensures the benefits of this settlement reach the people who need them most. This outcome reinforces the importance of strong oversight, fair markets, and accountability for companies that try to take advantage of consumers. Thank you to the Attorney General and her team for their efforts and continued partnership.”
“Putting New York families first means recognizing that affordability is essential,” said Syracuse Mayor Sharon Owens. “I thank Attorney General James for continuing to do just that. When corporations coordinate to drive up prices, working families bear the burden. As costs continue to rise, the impact on our households grows deeper and our commitment to supporting families must grow even stronger.”
“No family should have to pay more for a basic necessity because large corporations chose to manipulate the market for their own profit,” said Senator Christopher J. Ryan. “I am grateful that these companies are being held accountable and that the 140,000 eggs coming to the Food Bank of Central New York will help put healthy, nutritious food on the tables of thousands of families across our region at a time when people are still struggling with the high cost of living. This settlement delivers meaningful relief for Central New Yorkers while sending a clear message that corporate price-fixing will not be tolerated. I want to thank Attorney General James for her leadership in protecting consumers and ensuring these resources reach the families who need them most.”
“Families across New York have already been stretched thin by rising grocery costs, and they should never have to pay more because corporations are secretly manipulating prices,” said Assemblymember Pam Hunter. “This settlement delivers both accountability and immediate relief, including millions of eggs for food banks and community organizations serving New Yorkers. I thank Attorney General James for standing up to corporate greed and protecting working families.”
“At a time when families are struggling to feed their families, I would like to thank the Attorney General for securing 140,000 eggs for the Food Bank and the constituents of Central New York,” said Syracuse City Councilor Helen Hudson.
“New Yorkers deserve fair prices at the grocery store. No family should have to pay unfairly high prices because corporations chose profits over people,” said Onondaga County Legislator Ellen Block. “I commend Attorney General James for holding these companies accountable and securing both meaningful financial relief and millions of eggs that will help feed families across our state. This settlement sends a clear message that price manipulation will not be tolerated.”
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, 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.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
