Saving Seafood

Federal Court Dismisses False Claims Act “Whistleblower” Lawsuit Against Ocean Harvesters, Cooke Inc., Omega Protein

Allegations against all defendants dismissed in full

January 6, 2025 — REEDVILLE, Va. — The following was released by Ocean Harvesters:

The United States District Court for the Southern District of New York on Friday dismissed in full the qui tam “whistleblower” lawsuit United States of America ex rel. Chiles and Manthey v. Cooke Inc. et al. brought by relators W. Benson Chiles and Chris Manthey. From the outset of this case, Cooke Inc., Omega Protein, and Ocean Harvesters have maintained that the lawsuit, which alleged violations of the False Claims Act (FCA), misstated the facts and ignored the law. In granting the companies’ motions to dismiss, the court agreed that the relators’ theory was unfounded and failed as a matter of law.

At issue in the litigation is the companies’ compliance with vessel citizenship laws. For years, federal regulators have repeatedly found Ocean Harvesters to meet the relevant requirements to lawfully engage in commercial fishing activities. Through the lawsuit, the relators attempted to supplant this regulatory regime by substituting their judgment for the considered views of federal officials. In dismissing the lawsuit, the court concluded that the FCA does not permit the relators to do that, as they failed to meet the foundational requirement of even alleging that the companies deprived the U.S. government of money or property.

Separately, the court rejected the relators’ so-called reverse FCA theory, under which they asked the court to step into regulators’ shoes and assess penalties against the companies, notwithstanding the fact that those very same regulators never deemed it appropriate to pursue such remedies. Indeed, as the companies have maintained throughout, their compliance with vessel citizenship requirements meant that there would be no basis to assess any penalties.

Historical Context: Regulatory Compliance and MARAD’s Review
Ocean Harvesters has consistently demonstrated transparency with federal regulators. Beginning in 2020, the U.S. Maritime Administration (MARAD) reviewed Ocean Harvesters documentation and, as reported by Undercurrent News, “found it to be satisfactory and in compliance with fishery endorsement requirements.”

Documentation submitted earlier in the lawsuit by the defendants demonstrated that relevant ownership details were fully disclosed to MARAD, including information regarding the ownership structure. This evidence contradicted the relators’ allegations of improper concealment.

Ocean Harvesters Responds
“We are pleased that the court has dismissed this baseless lawsuit,” said Ben Landry, spokesperson for Ocean Harvesters. “The decision underscores our commitment to full compliance with federal laws and regulations, and vindicates the integrity of our operations. From the outset, we have been transparent with regulators.”

This case was decided by United States District Judge Jesse M. Furman, who has been on the court since 2012.

Judge dismisses lawsuit against Cooke alleging it operated Omega Protein illegally

January 6, 2025 — A federal judge has dismissed a 2021 lawsuit against Cooke Inc. that claimed it violated U.S. law when it acquired Omega Protein in 2017.

The lawsuit, filed by relators W. Benson Chiles and Chris Manthey on behalf of the U.S. government, was first unsealed in May 2024 after the U.S. Department of Justice declined to intervene. In the lawsuit, considered a “qui tam” action where a private citizen files on behalf of the U.S. government, Chiles and Manthey are considered “relators,” or private individuals who bring forth a lawsuit, while the U.S. government is the plaintiff.

Read the full story at Seafood Source

Newfoundland aquaculture industry pushing back against proposed marine protected area

December 17, 2024 — The Newfoundland Aquaculture Industry Association (NAIA) and Cooke Inc. CEO Glenn Cooke are pushing back against a proposal for a new marine protected area (MPA) they both say will negatively impact the aquaculture and fisheries industries in the Canadian province.

Canada’s federal government has proposed a new National Marine Conservation Area (NMCA) for the South Coast Fjords area, located on the southwest coast of the island of Newfoundland. The study for the new NMCA covers 9,112 square kilometers, and the feasibility of the project is currently being assessed by the government.

Read the full article at SeafoodSource

Cooke Enters Into Agreement for the Acquisition of Copeinca

November 7, 2024 — The following was released by Cooke Inc.:

Cooke Inc. (“Cooke”) and PF Cayman New Holdco Limited have executed a binding share purchase agreement under which a wholly-owned subsidiary of Cooke will indirectly acquire all the outstanding shares of Corporación Pesquera Inca S.A.C. (“Copeinca”) of Peru — one of the world’s largest fishmeal and fish oil producers and exporters.

Copeinca was established in 1994 and has grown to become Peru’s largest fishing company with 2,770 employees, 45 vessels and 8 processing plants that span the north and center coastline of Peru. Copeinca holds the largest anchoveta (Enaraulis ringens) quota in Peru at 15.9% and processes approximately 21% of the country’s total catch for annual production of approximately 200,000 MT of fishmeal and 23,000 MT of fish oil.

Upon completion of the acquisition, Cooke will strengthen its growing marine ingredients business and diversify its geographic and species portfolio.

“There is tremendous compatibility between Cooke and Copeinca, and we’re excited to welcome Copeinca’s dedicated employees to the Cooke family of companies,” said Glenn Cooke, CEO of Cooke. “High quality fishmeal and fish oil are essential animal and human nutritional ingredients. They ensure a safe and wholesome feed supply for the growth and care of animals in several farming groups, including aquaculture. We believe Copeinca will be a major contributor in furthering Cooke’s growth as a leader strengthening global food security.”

Copeinca holds numerous industry certifications that reflect its commitment to food security, health and safety, and environmental sustainability including MarinTrust, Friend of the Sea, ISO 14001, ABE, BASC, GMP+, and HACCP.

“Copeinca and Cooke share a people centric culture focused on building up working waterfronts in rural coastal communities through sustainable fish harvesting and responsible processing. Cooke’s strategic agility and vertically integrated operations will enable Copeinca to remain competitive in an evolving global export market,” said Jose Miguel Tirado, CEO of Copeinca. “Our Peruvian company is thrilled to join the Cooke family of companies. Peru and Canada have a very strong and growing trade and investment relationship thanks to active collaboration between governments under the Canada-Peru Free Trade Agreement.

Cooke entered the marine ingredients sector in 2017 with its acquisition of US-based Omega Protein Corporation, a nutritional product company and a leading integrated provider of specialty oils and specialty protein products.

Peru is the second largest export market for Canada in Central and South America, and Canada is the fourth most important export market for Peru in the world.

The acquisition is subject to customary closing conditions and is expected to close in November.

Deutsche Bank Securities Inc. acted as lead financial advisor to Copeinca, together with Antarctica Advisors International Corp.

About the Cooke family of companies:
Cooke Aquaculture Inc. was established in 1985 by the Cooke family in New Brunswick, Canada. From humble beginnings of one farm site and 5,000 salmon, Cooke Inc. is the largest private family-owned seafood company in the world employing 13,000 people worldwide. The Cooke family of companies operate global aquaculture and wild fishery divisions in 14 countries providing a sustainable seafood source reaching tables all over the world. Cooke’s core purpose is to ‘cultivate the ocean with care, nourish the world, provide for our families, and build stronger communities.

MAINE: How Canada salmon farmer Cooke became one of Washington County’s largest employers

October 2, 2024 — Cooke Inc., an aquaculture company based in New Brunswick and led by CEO Glenn Cooke, has operated salmon farms and hatcheries in Maine as Cooke USA for two decades.

One of Washington County’s largest employers, Cooke supplies farmed Atlantic salmon throughout New England and the U.S.

“Cooke, and salmon aquaculture in general, is woven into the fabric of Washington County’s economy,” said Chris Gardner, executive director of the Eastport Port Authority and chairman of the Washington County Commission.

Read the full article at Mainebiz

Virginia menhaden fleet files motion to dismiss lawsuit

July 15, 2024 — Virginia-based Ocean Fleet Services and Ocean Harvesters filed a “motion to dismiss” a $2 billion lawsuit against seafood giant Cooke Inc. of New Brunswick, Canada, that claimed the firm violated U.S. foreign ownership laws with the acquisition in 2017 of Omega Protein in Reedville, Va.

The lawsuit, filed on July of 2021 by plaintiffs W. Benson Chiles and Chris Manthey and unsealed in April 2024, alleges Cooke Inc., Omega Protein, Alpha Vessel Co. Holdings Inc., Ocean Fleet Services, Ocean Havesters, have been violating the American Fisheries Act (AFA) of 1998 and the 1920 Jones Act that allow only U.S. citizens to fish in U.S. waters.

The suit stems from an approximately $500 million purchase of Omega Protein of Reedville in 2017 by Cooke Inc. The lawsuit alleges that part of the deal was an illegal arrangement that gave Cooke improper control of the company and the fishing vessels.

The fishing companies’ motion to dismiss, filed July 9 in U.S. District Court in New York, alleges that the suit “lacks factual basis, are speculative, and are quite simply inaccurate.”

 “From the moment we became aware of this case, we have been eager to show that the allegations are inaccurate,” says an Ocean Harvesters spokesman. “Our legal filing underscores several key misstatements from the complaint and offers concrete evidence that they are false.”

The lawsuit alleges Cooke Inc. was involved in a “figurehead fraud scheme” creating a Delaware shell corporation to avoid violation of the AFA citizenship requirement and that “instead of simply acquiring Omega and owning its vessels (Cooke) restructured the entire acquisition to create an illusion of compliance with the AFA citizenship requirement.”

Read the full article at the National Fisherman 

Cooke reaches agreement to acquire Tassal

August 16, 2022 — Canada-based Cooke Inc. announced on 15 August that the company has reached an agreement with Tassal Group Limited to purchase the Australia-based aquaculture company.

In a release, Cooke announced the two companies reached an agreement that would have Cooke purchase all outstanding shares of Tassal for AUD 5.23 (USD 3.65, EUR 3.60) per share in cash, by way of a scheme arrangement.

Read the full article at SeaFoodSource

Glenn Cooke: “It’s time for suppliers and producers to totally cut Russia off”

March 17, 2022 — Glenn Cooke is the CEO of Cooke Inc., a vertically integrated family of seafood companies based in Blacks Harbour, New Brunswick, Canada. He spoke to SeafoodSource on Tuesday, 15 March, at the 2022 Seafood Expo North America/Seafood Processing North America in Boston, Massachusetts, U.S.A.

SeafoodSource: What have been Cooke’s big moves over the past few months?

Cooke: We’re always investing in our operations globally and we just launched a vessel for Argentine red shrimp fishery with the capability to do frozen-at-sea product, which is quite exciting, as we’ll be in this year’s fishery there. It’s a state-of-the-art vessel. We’re in the process of finalizing a new USD 45 million (EUR 40.5 million) plant in St. George, New Brunswick for salmon added-value processing that will be very robotized, automatic, and cut down our labor costs, which we have do because of a shortage of [workers]. The facility that’s there will be replaced by a brand-new facility and the one that’s there will be redone into a secondary value-added processing center. And we have a new smolt unit almost ready to be finalized as well in New Brunswick. Around the world, we are expanding our operations – we’re always investing heavily globally and we’ll continue to do that.

Read the full story at SeafoodSource

Cooke appoints Michael Szemerda as Global Chief Sustainability Officer

February 2, 2022 — The following was released by Cooke Inc.:

Cooke Inc. is pleased to announce the appointment of Michael Szemerda as Global Chief Sustainability Officer. 

“Cooke’s core purpose is ‘To cultivate the ocean with care, nourish the world, provide for our families, and build stronger communities’ and our approach to sustainability is central to this,” says Szemerda, who has been with Cooke for 30 years and works as the Vice President of Saltwater Operations for Cooke Aquaculture’s North American Operations. “Across all our subsidiary companies, we are fortunate to have some of the best and brightest minds in wild fisheries and aquaculture working to innovate and implement practices using sound science and advanced technologies to ensure our seafood is sustainable. I’m excited to unify these efforts and continue this important work with our colleagues around the globe.” In this newly established role, Szemerda will oversee all environmental programs and regulatory programs, industry certifications, and sustainability initiatives across Cooke’s global wild and farmed subsidiaries.  

“Michael has shown great leadership throughout his career with Cooke, and he has vast experience with all of Cooke’s saltwater operations around the globe,” says Glenn Cooke, CEO of Cooke Inc. “We’re thrilled that he has accepted this role at such a pivotal time of growth for our company. We know his experience with our operations, and knowledge of the seafood industry will help us in our commitment to protecting and enhancing the marine environments we work in.”  

Cooke is proud to offer True North Seafood products that meet a variety of certifications and recommendations to support sustainability. The Cooke family of companies ships one billion pounds of seafood annually through harvesting 30% wild species (wild salmon, whitefish, and shellfish) and 70% farmed species (Atlantic salmon, steelhead trout, white Pacific shrimp, sea bass, and sea bream).

Read the release here

 

Video: Cooke subsidiary Omega Protein sinks vessel to create artificial reef

June 18, 2021 — The Defender, a decommissioned vessel previously operated on behalf of Canadian giant Cooke Inc.’s harvesting and fishmeal processing subsidiary Omega Protein, was sunk last week off the coast of Louisiana, Accesswire reported.

The vessel will serve as an artificial reef for the benefit of the Gulf’s diverse marine eco-system, the company said.

The aim of the sinking is for the vessel to become a marine habitat, promoting biodiversity and creating recreational fishing and diving opportunities in the Gulf of Mexico.

Omega Protein has a track record of working with state agencies and non-profit organizations to offer decommissioned vessels to artificial reef programs.

The Defender, previously owned by Ocean Harvesters and operated on behalf of Omega Protein, was donated to the Louisiana Department of Wildlife and Fisheries (LDWF) under its its artificial reef initiative.

Read the full story at IntraFish