DOJ prepared egg antitrust suit, WSJ reports

Summary

The Justice Department was preparing an antitrust suit against major egg producers, including Cal-Maine and Versova, WSJ reported.

Why this matters

The reported case could affect scrutiny of food pricing and competition in the U.S. agricultural sector. It also adds to legal pressure on egg producers amid higher consumer food costs.

The U.S. Justice Department was preparing an antitrust lawsuit against several major egg producers, including Cal-Maine Foods and Versova, over alleged price coordination, The Wall Street Journal reported Friday, citing people familiar with the matter.

The lawsuit alleged the producers coordinated through an industry price-benchmarking service. The Justice Department and the companies could still reach a settlement to avoid litigation.

Cal-Maine shares fell nearly 5% in extended trading after the report.

U.S. egg producers have faced a growing number of class-action lawsuits alleging price-fixing as consumers contend with higher food prices, including eggs.

Earlier this month, Cal-Maine said it was cooperating with a Justice Department investigation into potential price-fixing by egg producers after receiving a civil investigative demand. The company said the scope, duration, and outcome of the probe were uncertain.

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