Cal-Maine Foods and other major egg producers are reportedly facing a civil antitrust lawsuit from the U.S. Department of Justice. The probe alleges that companies used a third-party data service, Expana, to coordinate and inflate egg prices during the 2024-2025 avian flu outbreak.
The U.S. Department of Justice is preparing a civil antitrust lawsuit against top egg producers including Cal-Maine Foods, alleging the companies illegally coordinated pricing during the recent avian flu epidemic that sent egg prices to record highs.
The investigation is part of the administration’s broader antitrust push targeting industries that use third-party data platforms to share pricing information, according to people familiar with the matter cited by The Wall Street Journal.
The DOJ alleges producers shared pricing data through a service called Expana, allowing them to coordinate market prices as the outbreak tightened supply. The average price for a dozen Grade A eggs surged to as high as $6.22 in early 2025 before falling over 62 percent to $2.35 by March 2026 as flocks recovered. Cal-Maine's stock is down 16 percent over the past 12 months.
The lawsuit creates significant legal and financial uncertainty for Cal-Maine, which saw its quarterly earnings per share collapse to $1.06 from $10.38 a year prior as prices normalized. A potential legal battle could result in substantial fines and mandated changes to industry pricing practices, and follows similar scrutiny of data sharing in the real estate and meat processing industries.
The egg industry has maintained that price volatility is common in agricultural markets, attributing the surge to reduced supply from the bird flu and higher production costs, not anti-competitive practices. Egg prices began to normalize about a year ago as the epidemic eased and producers rebuilt their flocks. The impact was clear in Cal-Maine's recent financial results for the quarter ending in February, where its total revenue fell by more than half compared to the previous year. It remains unclear whether the DOJ's case will be settled or proceed to a trial.
This article is for informational purposes only and does not constitute investment advice.
