Cal-Maine Foods said it reached a settlement with the U.S. Department of Justice and 17 state attorneys general after a 15-month investigation into egg producers and bidding information tied to cage-free supply arrangements.
Under the agreement, Cal-Maine was not hit with any fines or penalties. The company will also take on compliance and reporting measures.
For the states’ claims, Cal-Maine agreed to donate 30 million eggs and pay $1.5 million in total to the states to resolve the matter.
Chief Executive Sherman Miller said the company exited the cooperative in May 2024, before the DOJ investigation began, and said the company cooperated fully. He also said the company had invested more than $88 million in biosecurity since 2015 and significantly increased the number of chicks hatched during the period under review.
Miller said the market has since reversed, with egg supply now higher and wholesale egg prices at record lows. As a result of these announcements, the company's shares have moved 0.64% on the market, and are now trading at a price of $79.85. If you want to know more, read the company's complete 8-K report here.
