Saving Seafood

StarKist class-action suit payout less than expected

September 27, 2019 — Consumers who are part of a class-action lawsuit that Starkist agreed to settle in 2015 will get less than the tuna supplier originally agreed to pay.

The lawsuit, which claimed that StarKist was underfilling its five-ounce cans by a few tenths of an ounce, was settled out of court, with Starkist admitting no fault. As a result of the suit, residents of the United States who bought certain tuna products could obtain either USD 25.00 (EUR 22.84) in cash or USD 50.00 (EUR 45.68) worth of coupons for Starkist tuna.

Read the full story at Seafood Source

StarKist ordered to pay USD 100 million fine for role in tuna price-fixing

September 12, 2019 — StarKist & Company has been ordered to pay a criminal fine of USD 100 million (EUR 90.3 million) for its role in a tuna price-fixing conspiracy, the statutory maximum fine.

The decision, which was announced by the Department of Justice (DOJ) on 11 September, comes after the court and the company wrangled over the monetary amount of the fine. StarKist’s attorneys had been pushing to have the fine lowered to USD 50 million (EUR 45.1 million), calling the decision “life or death” for the company, while prosecutors had been pushing for a full fine based on the company’s recent investment in TechPack Solutions, an India-based can and bottle technology firm.

Read the full story at Seafood Source

Mom-focused seafood marketing campaign delivers healthy returns in US

May 30, 2019 — Soon after a U.S. pediatric doctors’ group said that children need to eat more seafood, the Seafood Nutrition Partnership (SNP) delivered some hopeful news for the cause, confirming that its recent marketing campaign targeted at mothers was highly successful.

In partnership with seafood suppliers such as Starkist, Trident, Bumble Bee, and Verlasso, the coupon and digital campaign that ran for eight weeks during Lent generated a 300 percent return on investment, SNP said. The organization’s investment of USD 100,000 (EUR 90,000) produced approximately USD 300,000 (EUR 269,000) in sales growth, SNP President Linda Cornish told SeafoodSource.

Notably, sales of seafood in supermarkets in Indianapolis, Indiana, where the pilot campaign took place, rose 2.4 percent during the promotional period. Frozen finfish soared more than 11 percent, far outperforming national sales growth of less than 3 percent, according to SNP.

“We surveyed local moms and poured over a lot of data to really understand the audience. We found that Indy-area moms like seafood and they want to eat it more, but they didn’t think their families would eat it,” Cornish said.

Read the full story at Seafood Source

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

U.S. consumers sue Bumble Bee, Chicken of the Sea, StarKist over ‘dolphin-safe’ tuna claims

May 14, 2019 — U.S. consumers sued Bumble Bee, Chicken of the Sea and StarKist, accusing the country’s three major packaged-tuna brands of deceiving them into thinking their tuna is caught only through “dolphin-safe” fishing practices.

The proposed class actions filed on Monday said the defendants employ fishing techniques that kill or harm dolphins, and do not always use safer, costlier pole-and-line and other methods used by such rivals as Whole Foods and Trader Joe’s.

The consumers said this makes the defendants’ dolphin-safe labels false and misleading, violating the laws of several U.S. states including California, Florida, New Jersey and New York.

They also said StarKist violated federal racketeering law through its alleged dealings with foreign fishing companies.

Concern about dolphin safety “makes tuna fish consumers no different from Hindus attributing zero value to beef products, or vegans attributing zero value to animal products, or vegetarians attributing zero value to meat, fish, and poultry,” the complaints said.

StarKist said it does not discuss pending litigation, but would not buy tuna “caught in association with dolphins.” It also condemned “indiscriminate fishing methods” that trap dolphins along with the intended catch.

Read the full story at Reuters

StarKist Fined by EPA For Failing to Comply With 2018 Settlement

April 19, 2019 — StarKist will have to pay $84,500 in penalties for violating the terms of a 2018 settlement, according to the U.S. Environmental Protection Agency (EPA).

The 2018 settlement was related to deficiencies in environmental compliance at StarKist’s tuna processing facility in American Samoa. StarKist initially paid a $6.5 million penalty to resolve the violations of federal environmental laws. The company had also agreed to make upgrades to reduce water pollution and the risk of releases of hazardous substances, in addition to providing American Samoa with $88,000 in emergency equipment for responding to chemical releases.

The EPA reports that StarKist violated the terms of the settlement on “multiple occasions” when they made unauthorized discharges from the facility to Pago Pago Harbor. A reported 80,000 gallons of wastewater was dumped into the inner harbor in one incident. The company also “violated the consent decree terms on 27 days when wastewater was routed around one of the required treatment measures to bypass a step in the wastewater treatment process.”

“EPA will continue to work closely with StarKist to ensure the needed safety and pollution control upgrades are realized, per our agreement,” said EPA Pacific Southwest Regional Administrator Mike Stoker. “With our American Samoa EPA partners, we will protect Pago Pago Harbor and the marine environment of American Samoa.”

This story was republished with permission from SeafoodNews.com

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

StarKist pleads guilty to role in canned tuna price-fixing

October 19, 2018 — StarKist pleaded guilty on Thursday, 18 October to fixing the prices of the canned tuna it sold in the United States between 2011 and 2013.

The Pittsburgh, Pennsylvania-based company pleaded guilty to one felony count of price-fixing, a violation of the Sherman Antitrust Act, according to documents filed in the U.S. District Court for the Northern District of California in San Francisco.

StarKist faces a fine of up to USD 100 million (EUR 87.1 million), a probationary term of between one and five years, and must pay restitution as a result of its plea. The exact amount of StarKist’s fine will be determined at a sentencing hearing and the plea agreement is subject to court approval. As part of its plea, StarKist has agreed to cooperate in the investigation.

StarKist became the second company to plead guilty in the case, following Bumble Bee’s guilty plea in May 2017. Bumble Bee faced a fine of up to USD 272.4 million (EUR 234 million), but eventually the Department of Justice agreed to a lower fine of USD 25 million (EUR 22.8 million) to protect the company from potential insolvency.

Former Bumble Bee executives Walter Scott Cameron and Ken Worsham and StarKist executive Stephen Hodge also each pleaded guilty in 2017 to conspiracy as part of the investigation, and former Bumble Bee CEO Christopher Lischewski was indicted in May 2017 on price-fixing charges but has pleaded not guilty. Lischewski’s case is ongoing.

In a press release, the U.S. Department of Justice Antitrust Division said the guilty plea brings to a close investigation into the industry pricing practices, which it initiated in 2015. The investigation began after a failed bid by Thai Union, which owns U.S. canned tuna firm Chicken of the Sea, to buy Bumble Bee in 2015. In September 2017, Thai Union acknowledged Chicken of the Sea was the whistleblower in the case and received conditional leniency as a result.

The investigation was conducted by the Department of Justice’s Antitrust Division – specifically by its San Francisco office – and by the FBI’s San Francisco field office. Federal Bureau of Investigation Special Agent in Charge John F. Bennett, who helped lead the investigation, and Makan Delrahim, the assistant attorney general leading the Justice Department’s Antitrust Division, issued statements after StarKist’s plea was entered.

Read the full story at Seafood Source

Walmart resolves anti-trust lawsuit against Chicken of the Sea

May 23, 2018 — Walmart has reached an agreement with Thai Union’s Chicken of the Sea International regarding antitrust claims initially brought forth by the retailer back in October 2016, and later amended in May of 2017.

The terms of the agreement will see Tri-Union Seafoods – which trades as Chicken of the Sea International – pay a cash settlement to Walmart and partner with the retail giant in a series of joint programs and new product promotions. New product innovations will also be launched and featured across Walmart stores in the United States as a result of the agreement, Chicken of the Sea said in a press release.

Groups of American wholesalers, retailers, and foodservice outfits began filing lawsuits in 2015 alleging that the three biggest providers of canned tuna in the United States – Tri-Union Seafoods, StarKist, and Bumble Bee – had conspired to “fix, raise, maintain, and/or stabilize prices for PSPs [packaged seafood products]” in the country. The series of lawsuits, as well as Thai Union’s failed bid to purchase Bumble Bee in 2015, spurred the U.S. Department of Justice (DOJ) to launch its own criminal antitrust investigation, examining claims that the three companies had colluded to increase prices for packaged tuna from 2008-2010, until at least July 2015.

Read the full story at Seafood Source