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Update:
- A federal judge in California trimmed part of a class action lawsuit accusing major tuna producers of price-fixing.
- StarKist, Bumble Bee and Chicken of the Sea have been accused of fixing and maintaining prices for packaged tuna.
- The tuna producers’ request for summary judgment was only partly granted.
- U.S. District Judge Dana Sabraw determined that some of the claims made against the tuna producers either failed under state laws or did not apply to the complaint.
- Judge Sabraw ruled that the tuna producers had not reached the bar needed for reconsideration, while denying them full summary judgment.
- The judge also determined the tuna producers failed to cite arguments that would support their claims.
Canned tuna price-fixing overview:
- Who: A group of major grocery store chains led by Kroger say their claims against canned tuna producers should take on bellwether status.
- Why: The grocery stores accuse the canned tuna producers of price-fixing.
- Where: The case is pending in California federal court.
(May 25, 2022)
A number of grocery store chains led by Kroger Co. argue their claims, which allege StarKist and other canned tuna producers conspired to fix the price of canned tuna, should take on bellwether status.
In a hearing May 20 in a California federal court, lawyers for Kroger Co. and the other grocery store chains argued that, by taking on bellwether status, the chains’ legal action could offer “important guidance” for the rest of the massive multidistrict litigation (MDL), which also includes end-consumers, Law360 reports.
However, canned tuna companies and indirect buyers, such as end-consumers, reportedly opposed the bid.
In last week’s hearing, U.S. District Judge Dana M. Sabraw called for a fuller briefing and a dedicated hearing on the question.
“This is a really weighty issue,” Judge Sabraw said.
Canned tuna bellwether could test scope of conspiracy, Kroger attorney says
In arguing for bellwether status, Kroger attorney William J. Blechman of Kenny Nachwalter PA said the Kroger case tests the scope of the conspiracy and its impact in ways the class cases do not.
He argued the Kroger plaintiffs were among the first to file suit. He also said the case is a better option for bellwether status than those from other direct buyers because the Kroger plaintiffs include a “cross-section of plaintiffs” that are not just supermarket chains but also wholesalers, a cooperative and a general store.
If the court tries the Kroger case first, it “will have succeeded in clearing out the largest portion of this MDL,” Blechman said.
However, opponents said it didn’t make sense to lead with a case that lacks the scope of one with more defendants. They also said it makes sense to lead with a plaintiff that hasn’t already settled with any defendants, unlike Kroger.
Earlier this year, Chicken of the Sea agreed to pay $20 million to indirect purchasers to resolve claims it worked with other tuna companies to artificially raise the price of tuna products.
What do you think about the arguments in this case? Let us know in the comments!
The Kroger plaintiffs are represented by Richard Alan Arnold, William J. Blechman, Douglas H. Patton and Samuel J. Randall of Kenny Nachwalter PA.
Other direct action plaintiffs are represented by Laurence D. King, Robert N. Kaplan, Gregory K. Arenson, Elana Katcher and Matthew P. McCahill of Kaplan Fox & Kilsheimer LLP; Valarie C. Williams and B. Parker Miller of Alston & Bird LLP; Richard L. Coffman of the Coffman Law Firm; Bernard D. Marcus, Moira C. Cain-Mannix and Erin Gibson Allen of Marcus & Shapira LLP; and Eric R. Lifvendahl of Lowis & Gellen LLP.
The Canned tuna price-fixing class action lawsuit is In re: Packaged Seafood Products Antitrust Litigation, Case No. 3:15-md-02670, in the U.S. District Court for the Southern District of California.
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