Chicken of the Sea Strikes Deal to Close Out Final Antitrust Class Action Lawsuits Against It

The company behind Chicken of the Sea says it has settled the remaining antitrust lawsuits filed against it for allegedly conspiring to inflate the price of canned tuna.

Tri-Union Seafoods LLC announced Monday it has reached an agreement in principle that would resolve all outstanding antitrust cases and bring an end to nearly seven years of litigation over its alleged price-fixing practices, according to Seafood Source. The cases involve direct purchasers, end-payors and commercial food preparers who contend they bought tuna from Chicken of the Sea International at artificially inflated prices.

Details of the settlements have not yet been released.

“At this stage, all that remains is final court approval of the settlement agreement negotiated and concluded by the parties,” the Tri-Union Seafoods statement said. “The settlement of these remaining antitrust litigation cases brings to an end the antitrust litigation cases in the United States of America against the Company and Tri-Union.”

Tri-Union and Chicken of the Sea were accused of participating in a scheme with other seafood purveyors to limit promotions, exchange confidential business information and boost the price of canned tuna in the U.S. between 2011 to 2013. The company came to face more than 30 lawsuits and class action lawsuits related to the price gouging and criminal antitrust charges.

Ultimately, Chicken of the Sea admitted to the scheme and price fixing.

A year ago, the company proposed a $6.5 million settlement to the presiding judge in the case, U.S. District Judge Janis L. Sammartino of California, but was denied preliminary approval on multiple grounds.

Judge Sammartino ruled that, in light of admissions of wrongdoing by Chicken of the Sea, the proposed payout to Class Members was too low. Less than $1.5 million was slated to go directly to the plaintiffs and Class Members for compensation, while $3 million was earmarked for attorneys’ fees and $2 million for costs.

The judge also questioned whether the deal was truly negotiated at arm’s length, an approach meant to ensure the parties do not influence each other.

The class action lawsuit against Chicken of the Sea began as nine separate putative class action lawsuits and 44 related civil cases. In December 2015, the cases were consolidated into one multidistrict case being handled by the U.S. District Court for the Southern District of California.

Chicken of the Sea says since the litigation began it has “made dramatic changes to the way it does business and how it shapes the industry,” including creating “a comprehensive compliance and training program, revised ethics code of conduct and [a] … sustainability platform to bring lasting change to the seafood industry.”

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The plaintiffs are represented by attorneys from Cuneo Gilbert; Joseph Saveri Law Firm Inc.; Derfner & Altman; Lovelace & Associates PA; Del Mar Law Group LLP; Barrett Law Group PA; Thrash Law Firm PA; Larson King LLP; Arthur N. Bailey & Associates; Neal & Harwell PLC; Lite Depalma Greenberg LLC; and Shindler Anderson Goplerud & Weese PC.

The Chicken of the Sea 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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