Saving Seafood

Exclusive: Chris Lischewski offers a warning to seafood CEOs

July 1, 2020 — Chris Lischewski is the former president and CEO of Bumble Bee Foods. Earlier this month, Lischewski was sentenced to 40 months in prison and given a USD 100,000 (EUR 88,000) fine after a jury found him guilty of conspiracy to fix the prices of canned tuna sold in the United States from 2011 to 2013.

SeafoodSource: Unless your testimony was misunderstood, you swore under oath that you were not part of any conspiracy to fix the prices of canned tuna while you led Bumble Bee. Do you stand by that statement? And if so, is that an indictment of the numerous individuals who swore under oath that you had been a leader in the purported conspiracy?

Lischewski: I did swear under oath that I would tell the truth, which is exactly what I did. Only two witnesses – [Walter Scott] Cameron and [Ken] Worsham – testified that I was a leader in the purported conspiracy. That testimony – given in return for a favorable sentencing recommendation by the government – was false. Shue Wing Chan of Chicken of the Sea testified that he had an unspoken “understanding” with me not to promote aggressively. But he admitted that the “understanding” existed only in his own mind and that I never told him that I shared it. As I testified at trial, whatever may have been in Chan’s mind, I had no price-fixing “understanding” with him of any kind.

Read the full story at Seafood Source

In a rare outcome, former Bumble Bee CEO will be sent to prison for price-fixing

June 17, 2020 — The former chief executive officer and president of Bumble Bee Foods, LLC, one of the world’s largest producers of canned tuna and other seafood products, has been sentenced to 40 months in jail for his leadership role in a three-year antitrust conspiracy to fix the prices of canned tuna. Christopher Lischewski’s sentence, which also includes a $100,000 criminal fine, comes after a San Francisco jury found him guilty in December of helping to orchestrate the scheme, which also involved the StarKist and Chicken of the Sea companies.

“The conduct was deliberate, it was planned, it was sustained, over a three-year period,” said Judge Edward M. Chen, according to reporting from Seafood Source. “This was not a rash act of having to commit a crime under distress, under episodic circumstances as we see sometimes, this was a contemplated and deliberate plan.”

Moreover, he said, the scheme targeted poor people.

Read the full story at The Counter

Found guilty of price-fixing, Chris Lischewski braces for upcoming sentencing

June 4, 2020 — Chris Lischewski, the former president and CEO of Bumble Bee Foods, will finally face sentencing on Tuesday, 16 June after months of delays caused by the coronavirus crisis.

After a three-week-long trial ending in December, a jury found Lischewski guilty of being involved in a scheme between Bumble Bee, StarKist, and Chicken of the Sea to fix the price of canned tuna sold in the United States between 2011 and 2013. Lischewski faces a maximum penalty of 10 years in prison and a fine of USD 1 million (EUR 900,000).

Read the full story at Seafood Source

Warmest Oceans Ever Force Tuna Titan to Start Protecting Fish

March 24, 2020 — Helping the canned tuna industry cope with climate change tops an already lengthy to-do list for Darian McBain, chief sustainability officer at the Thailand company that owns the Chicken of the Sea and John West brands.

In a business long accused by activists of abusing workers and killing dolphins, McBain’s responsibilities at Thai Union Group Pcl typically focused on improving labor rights in the supply chain and reducing the abandoned fishing gear on the high seas.

“Climate change hasn’t been the No. 1 topic,” she said. “Now, the climate emergency has to be a lot stronger part of the dialogue.”

The industry hasn’t yet confronted the magnitude of the problem, McBain said.

Read the full story at Bloomberg

Proposed settlement from Chicken of the Sea in class-action suit rejected by judge

January 27, 2020 — A proposed settlement between a class of commercial food-preparers and Chicken of the Sea, one of the three U.S. canned tuna companies found to have conspired to fix the prices of their products, has been rejected by the judge overhearing the case.

U.S. District Court for the Southern District of California Judge Janis L. Sammartino rejected a payment of USD 6.5 million (EUR 5.9 million), saying it is not clear the settlement provides enough money to those harmed by the price-fixing.

Read the full story at Seafood Source

How Thai Union rapidly pivoted to a greener business strategy

January 21, 2020 — Back in 2015, Thai Union had run into choppy waters. The multi-billion dollar seafood giant behind global tinned fish brands John West in the United Kingdom, Chicken of the Sea in the United States and King Oscar in Norway, among many others, had a PR shipwreck in its sights, and needed to shift coordinates swiftly.

Exposés in the New York Times, Associated Press and The Guardian had laid bare human rights abuses, forced labor and environmentally destructive fishing methods in Asian supply chains for canned seafood and prawns that ended up in U.K. supermarkets, placing Thai Union — one of the biggest producers in the world — firmly in the media and campaigner firing line.

Greenpeace didn’t mince its words, calling on consumers and investors to boycott the company, accusing it of “sacrificing the world’s oceans” and “destructive, wasteful fishing practices from its supply chains.”

“For far too long Thai Union Group has passed the blame onto others and hidden behind ineffective policies,” Greenpeace campaigner Graham Forbes said at the time. “Until this industry giant takes responsibility and demonstrates real leadership, we will work to ensure that every single customer knows it’s not just tuna that comes with buying one of its tainted brands.”

Read the full story at GreenBiz

Bumble Bee’s Chris Lischewski convicted of fixing prices of canned tuna

December 4, 2019 — Christopher Lischewski, the former president and CEO of Bumble Bee Foods, was convicted on 3 December, 2019, of helping to orchestrate a price-fixing conspiracy between Bumble Bee, Chicken of the Sea, and StarKist, the so-called “Big Three” players in the U.S. canned tuna sector.

Lischewski was found guilty of one count of price-fixing by a jury in the U.S. District Court for the Northern District of California and faces up to 10 years in prison and a fine of USD 1 million (EUR 900,000). His sentencing has been set for 8 April, 2020. Lischewski’s conviction may also open him up as a target of civil lawsuits filed by parties who overpaid for canned tuna as a result of the price-fixing, according to Eric Snyder, chairman of the bankruptcy practice at Wilk Auslander, a New York City-based law firm.

Read the full story at Seafood Source

Canned Tuna Maker Bumble Bee Preps for Bankruptcy Filing

November 18, 2019 — Bumble Bee Foods LLC is preparing to file for bankruptcy within days over mounting legal expenses stemming from its involvement in a conspiracy to fix prices on canned tuna, according to people familiar with the matter.

The San Diego-based company, owned by London-based private-equity firm Lion Capital, is expected to file a chapter 11 petition shortly and will put itself up for sale, the people said. Bumble Bee didn’t respond to a request for comment. Lion Capital, which bought the company in 2010 for $980 million, also didn’t immediately respond.

Bumble Bee pleaded guilty in 2017 and agreed to pay a $25 million fine for having formed a cartel with its two main competitors, Chicken of the Sea and StarKist Co.

The Justice Department subsequently indicted Bumble Bee Chief Executive Christopher Lischewski for his alleged role in the conspiracy. Mr. Lischewski, who pleaded not guilty, took a leave of absence from Bumble Bee last year and is on trial in California federal court.

Read the full story at The Wall Street Journal

Restaurant, catering group nears settlement with Chicken of the Sea on price-fixing suit

May 28, 2019 — A group of restaurants and catering companies have reached a USD 6.5 million (EUR 5.8 million) agreement with San Diego, California, U.S.A.-based Chicken of the Sea and its parent company, Thai Union, to settle a lawsuit alleging price-fixing.

The lawsuit stems from a price-fixing scandal in the U.S. canned tuna market exposed by a U.S. Department of Justice (DOJ) investigation in which Chicken of the Sea served as the whistleblower. The scandal led to prosecution of Chicken of the Sea’s primary co-conspirators, Bumble Bee Foods and StarKist. Both companies pleaded guilty to criminal charges in cases brought by the DOJ.

Chicken of the Sea’s potential settlement with the restaurants and catering companies, proposed Friday, 24 May, still must be approved by U.S. District Court for the Southern District of California Judge Janis L. Sammartino, who has not yet formally certified the grouping of affected companies involved in the agreement as an official class in the lawsuit. The parties suing claim to represent companies that indirectly purchased packages of tuna in 40-ounce sizes or greater from DOT Foods, Sysco, US Foods, Sam’s Club, Walmart, or Costco from June 2011 through December 2016.

Parties in the so-called “commercial food preparers” class involved in the proposed settlement include Capitol Hill Supermarket, Janet Machen, Thyme Cafe & Market, Simon-Hindi LLC, LesGo Personal Chef, Maquoketa Care Center, A-1 Diner, Francis T. Enterprises d/b/a Erbert & Gerbert’s, Harvesters Enterprises, LLC d/b/a Harvester’s Seafood and Steakhouse, Dutch Village Restaurant, Painted Plate Catering, GlowFisch Hospitality d/b/a Five Loaves Cafe, Rushin Gold LLC d/b/a The Gold Rush, Erbert & Gerbert, Inc., Groucho’s Deli of Raleigh, Sandee’ s Catering, Groucho ‘s Deli of Five Points, and Confetti’s Ice Cream Shoppe.

Read the full story at Seafood Source

US tuna companies face class-action lawsuits over “Dolphin-Safe” claims

May 15, 2019 — In the midst of dealing with numerous price-fixing lawsuits, Bumble Bee Foods, Chicken of the Sea, and StarKist now face class-action complaints over the “Dolphin-Safe” claims on their tuna products.

While Lion Capital-owned Bumble Bee, Thai Union-owned Chicken of the Sea, and Downgon Industries-owned Starkist claim that their products are “Dolphin-Safe,” that is not the case, according to the racketeering and fraud complaints filed in United States District Court in San Francisco, California, U.S.A.

The “Dolphin-Safe” label signifies that no dolphins were killed or seriously injured as a result of the catching of the tuna contained in their products. But the suppliers’ tuna fishing practices “kill or harm substantial numbers of dolphins each year,” the lawsuit against StarKist stated.

“And, because defendant does not adequately trace or otherwise identify the tuna that is not ‘Dolphin-Safe’ and physically segregate and store it separately from any tuna that may be ‘Dolphin-Safe,’ defendant may not label any of its products as ‘Dolphin-Safe,’” the StarKist complaint said.

While StarKist “does not comment on pending legal matters”, Michelle Faist, senior manager of corporate affairs for StarKist Co., told SeafoodSource, the supplier “will not purchase any tuna caught in association with dolphins.”

“StarKist Co. is committed to protecting the dolphins and was the first company to adopt a dolphin-safe policy in April 1990,” Faist said.

The policy states that: “StarKist will not purchase any tuna caught in association with dolphins. StarKist continues its practice of refusing to purchase tuna caught with gill or drift nets, which are known to be dangerous to many forms of marine life. StarKist condemns the use of these indiscriminate fishing methods that trap dolphins, whales, and other marine life along with the intended catch of fish.”

Read the full story at Seafood Source