June 5, 2017 — Clandestine phone calls. Surreptitious emails. In-person meetings to avoid a paper trail.
The purpose of all the secrecy? To keep the price on packaged tuna — the quick source of protein found in cans and pouches — artificially high.
New details of exactly how the country’s three largest tuna companies, including Pittsburgh’s StarKist Co., allegedly spent years sharing information and collaborating are included in a pile of amended complaints submitted last month in federal court by numerous grocers, restaurants and suppliers.
It’s the latest round in an ongoing court battle alleging price fixing in the packaged seafood industry. Bumble Bee Foods and Tri-Union Seafoods, which trades under Chicken of the Sea, both based in San Diego, are also named.
The U.S. Department of Justice, which is conducting its own investigation into alleged price fixing in the industry, announced in early May that Bumble Bee Foods agreed to pay a $25 million fine after pleading guilty to conspiring with competitors to fix prices. The DOJ said the company also is cooperating with the antitrust investigation. It’s the third charge to be filed in the investigation.
The DOJ had released information that triggered the amended complaints, according to one attorney.
A spokesperson for Starkist, Chicken of the Sea and Bumble Bee declined to comment on pending litigation, but in 2016 attorneys representing StarKist urged the court to dismiss the case. They argued that it’s not unusual for people working in the same industry to know each other and to meet at industry gatherings.
But a lot of retailers are arguing that the evidence shows the exchanges were not so innocent.
The latest court documents — which are heavily redacted — include details such as Walmart and Ohio-based grocer Kroger charging that executives “used misleading subject lines on emails to affirmatively conceal the conspiratorial nature of their communications from those not involved in the conspiracy.”