Saving Seafood

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

Washington state sues Starkist over price-fixing

June 3, 2020 — Bob Ferguson, the attorney general for the U.S. state of Washington, filed a civil lawsuit on 2 June against canned tuna producer Starkist, its parent company Dongwon Industries, and Chris Lischewski, the former CEO of Bumble Bee Foods, alleging a price-fixing conspiracy they were involved cost the state’s citizens at least USD 6  million (EUR 5.3 million).

Washington is the first state to bring a civil suit in the price-fixing scandal, which resulted from an investigation by the U.S. Department of Justice’s Antitrust Division, resulting in guilty pleas from StarKist and Bumble Bee in separate criminal trials, and Lischewski’s conviction in a trial at the end of last year.

Read the full story at Seafood Source

Bumble Bee pushing past scandal and bankruptcy with new partnerships and products

March 6, 2020 — Bumble Bee has emerged from years of tumult with a splash: A new owner, new product packaging, new product lines, and, perhaps most significantly, an industry-first partnership with a plant-based food producer, Good Catch.

The San Diego, California, U.S.A.-based tuna company’s travails of the past couple years are well-known. The company was fined USD 25 million (EUR 22.3 million) after pleading guilty in a tuna price-fixing scandal in 2017, then entered Chapter 11 bankruptcy this past November. In January, the company was bought by the Taiwanese company FCF Co. for USD 928 million (EUR 826 million), with which it has a 30-year business relationship.

Read the full story at Seafood Source

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

Bumble Bee hoping to pay executive bonuses, over objections of creditors

January 10, 2020 — The creditors of Bumble Bee Foods, which filed for chapter 11 bankruptcy protection in November 2019, have asked the judge overseeing the case to prevent the company from paying year-end bonuses to some of its employees.

Bumble Bee is hoping to pay 37 of its employees enrolled in its Key Employee Incentive Program (KEIP) – created after the company filed for bankruptcy – between USD 1.3 million and USD 3.2 million (EUR 1.16 million and EUR 2.88 million) as a performance bonus for helping the company maintain cash flow during its difficult past few months.

Read the full story at Seafood Source

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

Inside Bumble Bee’s long summer of selling itself

November 29, 2019 — On 21 November, the same day it filed for chapter 11 bankruptcy protection, Bumble Bee Foods announced it had entered into an agreement with FCF Co., its primary supplier of tuna, which agreed to acquire the company’s assets for approximately USD 925 million (EUR 836 million).

In a statement accompanying the announcement, Bumble Bee President and Chief Executive Officer Jan Tharp said she “anticipates that the transaction will move swiftly and close within 60 to 90 days.”

Read the full story at Seafood Source

FCF swoops in for Bumble Bee as it files for bankruptcy

November 22, 2019 — Taiwan-based Fong Chun Formosa (FCF) Fishery Company has entered into an asset purchase agreement with Bumble Bee Foods, which filed for chapter 11 bankruptcy in the U.S. state of Delaware.

The 25-page filing, made on 21 November, includes more detail about FCF’s stalking-horse bid for the company, which was first reported by Bloomberg to be around USD 925 million (EUR 836 million).

Read the full story at Seafood Source

Chris Lischewski trial enters second week as key witnesses testify

November 19, 2019 — The trial of Chris Lischewski is now in its second week, with a panel of 16 jurors having heard six days of testimony from many of the witnesses deemed most important to the government’s price-fixing case against the former Bumble Bee president and CEO.

Lischewski is on trial for a single charge of engaging in a conspiracy to fix the prices of canned tuna in the United States from 2011 to 2013. The case is being heard by District Court Judge Edward M. Chen of the Northern District of California.

Read the full story at Seafood Source

More Norwegian salmon producers receive subpoenas in US DOJ antitrust investigation

November 15, 2019 — Lerøy Seafood, Grieg Seafood, and SalMar each received subpoenas from the U.S. Department of Justice (DOJ) on Friday, 15 November, according to press releases from the three Norwegian salmon farming firms.

The subpoenas are part of a criminal investigation by the DOJ’s Antitrust Division into allegations of price-fixing in Norway’s farmed-raised salmon industry, according to the releases.

Read the full story at Seafood Source