Cal-Maine Foods Reaches Settlement with DOJ, Donates 30 Million Eggs
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 30 2026
0mins
Cal-Maine Foods announced that it has reached an agreement to resolve the claims of the U.S. Department of Justice, or DOJ, and 17 states' attorneys general against the company, subject to applicable approvals and court procedures. The agreement follows a 15-month-long investigation by the DOJ that centered broadly on whether egg producers that had organized a cooperative to supply eggs to customers in compliance with cage-free requirements in certain markets were attempting to manipulate an industry price index by sharing information about bidding activities. Cal-Maine was a member of the cooperative, but exited in May 2024, prior to and unrelated to the initiation of the DOJ's investigation. Cal-Maine cooperated fully in the review process. The company denies all wrongdoing and violations of law and continues to believe that such claims are baseless and that its conduct was lawful, appropriate and in the best interest of supplying eggs to the marketplace. Cal-Maine further maintains that the company's communications cited in the complaint - which were made primarily by a single former employee - did not impact egg prices in any market. Under the terms of the agreement, Cal-Maine was not assessed any fines or penalties and has agreed to implement certain compliance and reporting measures. With respect to claims by the states' attorneys general, Cal-Maine agreed to donate 30M eggs, supplementing its contributions to food banks and non-profits across the country as part of the company's long-standing commitment to communities in need. In addition, Cal-Maine agreed to pay a total of $1.5M to such states to resolve this matter.
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Analyst Views on CALM
Wall Street analysts forecast CALM stock price to rise
3 Analyst Rating
1 Buy
2 Hold
0 Sell
Moderate Buy
Current: 85.190
Low
85.00
Averages
90.00
High
100.00
Current: 85.190
Low
85.00
Averages
90.00
High
100.00
About CALM
Cal-Maine Foods, Inc. is primarily engaged in the production, packaging, marketing and distribution of fresh shell eggs, including conventional, cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs, as well as a variety of ready-to-eat egg products. The Company’s integrated operations consist of hatching chicks, growing and maintaining flocks of pullets, layers and breeders, manufacturing feed, and producing, processing, packaging, and distributing shell eggs. The Company provides specialty and conventional eggs. Specialty eggs encompass a broad range of products, such as cage-free, organic, brown, free-range, pasture-raised and nutritionally enhanced eggs. Its Farmhouse Eggs brand eggs are produced at its facilities by hens that are provided with a vegetarian diet. It markets organic, vegetarian and omega-3 eggs under its 4-Grain brand, which consists of conventional and cage-free eggs. Its Sunups and Sunny Meadow brands are sold as conventional eggs.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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- Significant Market Impact: In February 2023, average retail prices for eggs surged by 150% year-over-year, becoming emblematic of high inflation, primarily driven by a deadly bird flu outbreak that severely limited egg supply, exacerbating economic pressures on consumers.
- Settlement Terms: The agreement mandates the companies to implement antitrust compliance measures and appoint compliance officers to prevent future price manipulation, highlighting the government's commitment to ensuring price transparency and fair competition in the food sector to protect consumer interests.
- Donation Commitment: The three companies agreed to donate a total of 53 million eggs to food banks, despite denying any wrongdoing and attributing price increases to external factors like bird flu, reflecting a sense of corporate social responsibility during a crisis.
See More
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- Egg Distribution Plan: Of the 53 million eggs secured through the settlement, approximately 4.9 million will be delivered directly to food banks and community organizations in New York, highlighting a commitment to social responsibility and support for families in need.
- Market Impact and Warning: The Attorney General emphasized that the actions of egg producers to manipulate the market for higher profits will be halted, sending a strong message to other companies that illegal price hikes will not be tolerated in New York.
See More
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- Donation Initiative: The companies will also donate 53 million eggs to food banks and nonprofit organizations across participating states, which not only helps alleviate food shortages but also enhances the corporate social responsibility image of the producers.
- Investigation Context: This settlement stems from an investigation into alleged egg price manipulation involving 17 states, reflecting the government's commitment to fair competition in agricultural markets and potentially leading to more regulatory measures in the industry.
- Industry Implications: This incident may prompt other egg producers to reassess their pricing strategies to avoid similar legal risks, while also encouraging consumer awareness and discussion regarding egg prices.
See More
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- Settlement Agreement: Cal-Maine Foods has reached a settlement with the U.S. Department of Justice and 17 state attorneys general, concluding a 15-month investigation, although the company denies all wrongdoing and asserts that the claims are baseless.
- Compliance Measures: Under the terms of the settlement, Cal-Maine will not incur any fines but has agreed to implement compliance and reporting measures to enhance corporate governance and ensure the legality of future operations.
- Community Contribution Commitment: As part of the settlement, Cal-Maine will donate 30 million eggs to food banks and non-profits nationwide, further demonstrating the company's long-standing commitment to community support and addressing food security issues.
- Market Dynamics Response: Cal-Maine has invested over $88 million in biosecurity measures over the past five years to address avian influenza outbreaks and market fluctuations, ensuring stable egg supply, with current wholesale prices now at record lows, showcasing the company's adaptability in a dynamic market.
See More
