StarKist, private equity firm Lion settle tuna price-fixing cases for $200 mln
StarKist agrees to $130 mln settlement for consumers; $58.7 mln in cash, product for other purchasers
Settlements resolve claims of price-fixing conspiracy
By Mike Scarcella
Aug 14 (Reuters) -Seafood giant StarKist, its parent Dongwon Industries and private equity firm Lion Capital, owner of Bumble Bee Foods, have agreed to pay $200 million to settle U.S. class actions claiming they overcharged consumers and other purchasers of packaged tuna.
A preliminary consumer settlement was filed on Tuesday night in federal court in San Diego, California, and requires approval by U.S. District Judge Dana Sabraw. StarKist agreed to pay $130 million, according to the terms.
In a related settlement, also announced on Tuesday, StarKist and Dongwon, based in South Korea, agreed to pay $58.7 million in cash and tuna product and Lion agreed to pay $6 million to a class of direct purchasers of tuna that included national retailers and grocery stores.
Sabraw will consider the proposed settlements at a hearing on Aug. 23. The defendants have all denied any wrongdoing in the antitrust cases, which were first filed in 2015.
Reston, Virginia-based StarKist, which makes StarKist Tuna, in a statement said it was "glad to resolve these matters, and move forward with a new and positive chapter" for the company.
Lion, based in the UK, and its lawyersdid not immediately respond to a request for comment.
Mark Rifkin, an attorney for the consumers, said the "settlement will get meaningful cash benefits to consumers across the country."
Lion acquired Bumble Bee in 2010 for $980 million, but the seafood company's assets were later sold as part of its 2019 bankruptcy.
The consumer class has more than 100 million members who bought cans of tuna between 2011 and 2015.
The deals resolve long-running claims over price-fixing in the packaged tuna market. The U.S. Supreme Court in 2022 turned down StarKist’s appeal of a decision granting class action status in the cases.
The civil price-fixing litigation came after criminal prosecutions of packaged tuna suppliers, including StarKist and Bumble Bee. Federal prosecutors claimed a price-fixing conspiracy affected more than $600 million in canned tuna sales for years.
Bumble Bee in 2017 and StarKist a year later pleaded guilty to a criminal conspiracy to violate federal antitrust laws.
The consumer class earlier reached a $16 million deal with Chicken of the Sea and its parent Thai Union Group, pushing the total recovery to $152.2 million.
The consumers’ lawyers said they would seek up to 33% of the fund for legal fees, or about $50.7 million.
A trial was set for July in the consumers' case, which had estimated $224 million in damages, court records show.
In Re: Packaged Seafood Products Antitrust Litigation, U.S. District Court, Southern District of California, No. 3:15-md-02670-DMS-MSB.
Read more:
U.S. Supreme Court rejects StarKist's tuna price-fixing class action appeal
Class lawyers defend certification order in tuna price-fixing case
Private equity firm Lion Capital loses bid to end tuna price-fixing lawsuit
En banc 9th Circuit takes up certification of classes with uninjured plaintiffs
Reporting by Mike Scarcella
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
