Saving Seafood

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 companies file class-action suit alleging price-fixing by Norwegian farmed salmon firms

April 25, 2019 — A class-action lawsuit filed on behalf of U.S. direct purchasers of Norwegian farmed salmon is accusing multiple Norwegian firms including Mowi, Grieg Seafood, Lerøy Seafood, and SalMar of conspiring to fix the prices of farmed salmon.

The lawsuit, filed on Tuesday, 23 April, alleges the major players in Norway’s farmed salmon industry exchanged competitively sensitive information among themselves, with the aim of artificially controlling the price of farm-raised salmon bought by U.S. seafood buyers, a violation of the Sherman Anti-Trust Act.

The lawsuit is largely based on an ongoing investigation by the European Commission into “suspected anti-competitive practices” in the farmed Atlantic salmon sector in Europe, first made public in February 2019. The investigation included raids by E.C. officials of the Scottish and Dutch corporate offices of several seafood companies based in Norway, including Mowi, Grieg Seafood, Lerøy Seafood, and SalMar.

A letter sent by the E.C. to one of the companies, obtained by SeafoodSource, revealed the E.C. approved a decision on 6 February, 2019, to investigate information received “from different actors operating at different levels in the salmon market” alleging that some Norwegian producers “participate or have participated in anti-competitive agreements and/or concerted practices related to different ways of price coordination in order to sustain and possibly increase prices of farmed Norwegian Atlantic salmon.”

The lawsuit was filed in U.S. District Court in the Southern District of Florida (Miami Division) on behalf of Mentor, Ohio-based Euclid Fish Company, according to Arthur Bailey of Hausfeld LLP, one of the plaintiffs’ attorneys. Numerous other similar suits have and will continue to be filed containing similar allegations, including by Schneider’s Seafood & Meats of Cheektowaga, New York, and by Euro USA Inc. of Cleveland, Ohio, Bailey told SeafoodSource. Within the next month, the cases will be combined into one larger class-action suit including all direct purchasers of Norwegian farmed salmon, Bailey said. The case will be heard by James Lawrence King.

Read the full story at Seafood Source

StarKist facing “life or death” hearing in price-fixing case

April 12, 2019 — A U.S. judge holds the fate of canned tuna company StarKist in his hands, according to a company representative speaking in federal court.

Niall Lynch, an attorney representing StarKist in a hearing with U.S. District Court Judge Edward M. Chen, called the decision in the upcoming sentencing of the company following its guilty plea “unprecedented.”

“This is a USD 50 million [EUR 44.3 million] hearing. The low end [of the fine] is USD 50 million, the high is USD 100 million [EUR 88.5 million],” he said. “This is really about the life or death of our company, and its ability to continue as an ongoing concern.”

Pittsburgh, Pennsylvania-based StarKist announced it would plead guilty on Thursday, 18 October, 2018, to fixing the prices of the canned tuna it sold in the United States between 2011 and 2013. In that time, StarKist acknowledges selling around USD 600 million (EUR 531 million) worth of canned tuna, setting its minimum criminal fine at USD 50 million and the ceiling on the fine at USD 100 million.

Attorneys representing the Antitrust Division of the U.S. Department of Justice have argued the company can afford to pay the maximum fine, but at the 14 November, 2018, hearing in which StarKist entered its guilty plea, Lynch said that amount, combined with the restitution it is paying to retailers and foodservice companies as a result of lawsuits connected to the price-fixing, will put the company’s future in jeopardy.

Read the full story at the Seafood Source

European Commission investigating potential price-fixing in European farmed salmon sector

February 19, 2019 — The European Commission has confirmed it carried out unannounced inspections on the morning of Tuesday, 19 February at the premises of several companies involved in the farmed Atlantic salmon sector in Europe.

In a statement, the E.C. said it “has concerns that the inspected companies may have violated E.U. antitrust rules that prohibit cartels and restrictive business practices.”

The E.C. did not say what sparked its investigation, nor did it identify which companies are being investigated or which sites its investigators visited. However, Mowi (formerly Marine Harvest) and Greig Seafood confirmed to SeafoodSource their facilities were among those visited on Tuesday. Additionally, a Scottish Sea Farms facility jointly owned by SalMar and Leroy Seafood was also inspected, SalMar CEO Olav-Andreas Ervik confirmed to Reuters.

“We have been informed that The European Commission DG (Director General) Competition is exploring potential anti-competitive behavior in the salmon industry. They have performed an inspection today at Grieg Seafood Shetland,” Grieg Seafood Global Communications Manager Kristina Furnes told SeafoodSource in an email. “The salmon market is very competitive and we are not aware of any anti-competitive behavior. We are co-operating with the European Commission DG Competition’s investigation.”

Furne referred further questions about the investigation to the European Commission DG Competition.

Read the full story at Seafood Source