Chicken of The Sea Price-Fixing Lawsuit Receives Preliminary Settlement Approval

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Canned Tuna Price-Fixing MDL Overview: 

• Who: Preliminary approval has been granted for proposed settlements between Chicken of the Sea and three purchaser classes.
• Why: Purchasers claim Chicken of the Sea participated in price-fixing canned tuna products.
• Where: The orders were filed in California federal court.

Preliminary approval for proposed settlements between Chicken of the Sea (COSI) and three separate classes of purchasers to resolve price-fixing allegations has been approved by a California federal court. 

Direct purchasers, commercial food preparers and end payers were all awarded preliminary approval on Jan. 26 for the settlements, totaling around $40 million.  

The settlement resolves claims surrounding allegations the company participated in the price-fixing of canned tuna products with StarKist and Bumble Bee. 

End payers will receive a settlement totaling $20 million with $5 million used to cover administrative and notice-related costs, according to the order. 

The court said it found the settlement met “all the relevant factors” needed for approval to be “appropriate.” 

The court considered factors including COSI indicating it may not be able to afford to pay a full judgment, the risk of end payers being able to retain class certification throughout trial and the “risk, expense, complexity and delay of further litigation.” 

Additionally, the court took into account the settlement amount with the fact that COSI applied for and was granted leniency status, which grants it certain civil protections including exemptions from joint and several liability. 

“The totality of the factors show that this Settlement is well within the range of possible approval,” the court said. 

Direct Purchasers Given Approval For Settlement Estimated To Provide $13M In Relief

The class of direct purchasers, meanwhile, were given approval for a settlement estimated to provide a total of $13 million in relief with COSI and its parent company Thai Union Group agreeing to repay 3.2% of the combined sales of the packaged tuna products sold to class members. 

Direct purchasers have agreed to drop all matters of their complaint, as part of the settlement. Class members will be notified by mail and email, in addition to a press release, according to the order. 

Direct purchasers previously requested for preliminary settlement approval in March of last year; however, they were denied at that time and instructed to refile with more information, which they did in December. 

Approval was also granted for a settlement class of commercial food preparers. A deadline to file a final approval has been set for May 25. 

Have you purchased canned tuna from Chicken of the Sea? Let us know in the comments! 

The Canned Tuna Price Fixing MDL 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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