By CWEB News
The U.S. Department of Justice (DOJ) under President Trump has launched an antitrust investigation into the nation’s largest egg producers, scrutinizing potential collusion to manipulate supply and inflate prices amid historic spikes in egg costs, sources confirm to CWEB News. The probe, spearheaded by the DOJ’s Antitrust Division, centers on allegations that major industry players shared sensitive pricing and production data to artificially restrict supply, exacerbating financial strain on consumers and businesses.
Avian Flu Defense vs. Collusion Claims
Egg producers, including industry giant Cal-Maine Foods and trade groups like the United Egg Producers, have blamed record-breaking price surges on avian flu outbreaks that decimated poultry flocks in 2022–2023. However, internal industry data reviewed by regulators suggests the impact of the disease may have been exaggerated, with some producers allegedly leveraging the crisis to justify supply cuts and price hikes. Advocacy groups and lawmakers accuse the $10 billion industry of exploiting the pandemic to maximize profits.
DOJ Demands Records, Law Firm Mobilizes
The DOJ has reportedly issued document preservation notices to key producers, including Cal-Maine, Vital Farms, Post Holdings’ subsidiary Michael Foods, Rose Acre Farms, and Versova Holdings, demanding communications related to pricing, production levels, and supply chain decisions. Parallel to the federal probe, Grabar Law Office has initiated a civil investigation into potential anticompetitive practices, urging businesses that purchased eggs directly from these companies to come forward.
“If producers colluded to reduce supply or fix prices, businesses have a right to recover overcharges,” said attorney Joshua Grabar. “We’re focused on holding these companies accountable for distorting the market.”
Industry Giants Under Scrutiny
Publicly traded firms like Cal-Maine—which reported a $758 million profit in fiscal 2023, up 471% year-over-year—face heightened scrutiny. Smaller producers, including pasture-raised egg leader Vital Farms, are also under the microscope. Critics argue consolidation in the industry (Cal-Maine alone controls ~20% of U.S. egg supply) has enabled coordinated pricing strategies.
Political and Public Backlash
The investigation follows mounting pressure from Congress and consumer advocates, who argue egg prices have outpaced inflation rates linked to avian flu. While wholesale prices have recently dipped, retail costs remain elevated, fueling skepticism about industry transparency.
Next Steps for Affected Businesses
Grabar Law Office encourages restaurants, retailers, and food manufacturers that purchased eggs directly from major producers to contact them regarding potential claims. Legal experts suggest the DOJ’s findings could lead to lawsuits, fines, or settlements reminiscent of past price-fixing cases in the poultry and seafood sectors.
For more details or to participate in the investigation, visit Grabar Law Office, email Joshua Grabar at jgrabar@grabarlaw.com, or call 267-507-6085.
CWEB News will continue monitoring this developing story.
CWEB News – Uncovering the stories behind the headlines.
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