Saving Seafood

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

 

Lawsuit takes aim at kings of the tuna industry

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.”

Read the full story at the Pittsburgh Post-Gazette

Feds Dive Into Giant Tuna Price-Fixing Case

January 22, 2016 — SAN DIEGO (CN) — An ongoing antitrust case against seafood giants got even bigger as the federal government has intervened in litigation against the likes of Bumble Bee, Tri-Union Seafoods, StarKist, and others.

U.S. District Court Judge Janis Sammartino held a status conference Wednesday in a room filled to the brim with more than 50 lawyers from around the nation, hoping to move the case forward.

The U.S. Department of Justice Antitrust Division filed an unopposed motion to intervene in the lengthy litigation on Jan. 13. The feds are seeking a limited stay of discovery to aid in an ongoing federal grand jury investigation in the Northern District of California, into whether the biggest canned tuna producers violated the Sherman Act by conspiring to fix prices.

  The original class action complaint was filed in San Diego by Olean Wholesale Grocery Cooperative on Aug. 3, 2015. Dozens of lawsuits over price-fixing by the three biggest packed-seafood companies have since trickled into San Diego Federal Court after being transferred from other courts across the nation.

     The three companies control 73 percent of the U.S. market: Bumble Bee, 29 percent; StarKist, 25.3 percent; and Tri-Union, 18.4 percent, according to the complaint.

     Both Bumble Bee and Tri-Union Seafoods, which makes Chicken of the Sea brand shelf-stable tuna, are headquartered in San Diego – once the tuna-fishing capital of the world.

Read the full story at Courthouse News Service