Christopher Lischewski, president and CEO of Bumble Bee Foods, has been indicted by a federal grand jury in California and charged with one count of felony price-fixing for his alleged role in a scheme to fix the price of canned and packaged seafood sold in the United States. U.S. v. Lischewski, No. 18-0203 (N.D. Cal., filed May 16, 2018). The felony charge alleges that Lischewski and co-conspirators engaged in "an unreasonable restraint of interstate commerce" in violation of the Sherman Act; the maximum penalties include up to 10 years' imprisonment and a fine of $1 million. Lischewski's indictment follows guilty pleas on similar charges from Bumble Bee and its former senior vice president.
Tag Archives price-fixing
The Court of Justice of the European Union (ECJ) has issued a ruling that may result in price-fixing fines of up to $5 million for 18 endive producers alleged to have created a “complex and continuous cartel” intended to enforce minimum producer prices. President of the Autorité de la concurrence v. Assoc. des producteurs vendeurs d’endives, No. C-671/15 (E.C.R., entered November 14, 2017). The dispute began in 2007 after French officials for consumer affairs and fraud prevention referred an investigation of industry practices to the French Competition Authority (FCA). After an appeals court reversal holding that the producers had not engaged in price-fixing, FCA brought an appeal in cassation; that court stayed proceedings and asked the ECJ for a preliminary ruling on the matter. ECJ held that practices related to the collective fixing of prices, control of products or exchanges of strategic trade information violate the Treaty on the Functioning…
Dollar General Corp, Moran Foods LLC and Krasdale Foods, Inc. have filed lawsuits alleging that the makers of Bumble Bee, StarKist and Chicken of the Sea illegally conspired to fix prices for their products, echoing ongoing litigation alleging similar facts. Dollar General Corp. v. Bumble Bee Foods LLC, No. 17-1744 (S.D. Cal., filed Aug. 29, 2017); Moran Foods LLC v. Bumble Bee Foods LLC, No. 17-1745 (S.D. Cal., filed Aug. 29, 2017); Krasdale Foods, Inc. v. Bumble Bee Foods LLC, No. 17-1748 (S.D. Cal., filed Aug. 30, 2017). The plaintiffs seek compensatory damages and attorneys’ fees. Nine putative class actions and related individual cases alleging price-fixing by the tuna companies were consolidated in multidistrict litigation in December 2015.
Bumble Bee Foods, LLC has agreed to plead guilty to one felony count for its role in a conspiracy to fix prices of shelf-stable tuna and will pay a minimum $25 million fine. U.S. v. Bumble Bee Foods LLC, No. 17-CR-249 (N.D. Cal. May 8, 2017). According to the U.S. Department of Justice, Bumble Bee conspired with other seafood companies and their executives to inflate prices for canned and pouch tuna. Two Bumble Bee executives have already pleaded guilty to criminal charges; details appear in Issue 625 of this Update. “Today’s charge is the third to be filed—and the first to be filed against a corporate defendant—in the Antitrust Division’s ongoing investigation into price fixing among some of the largest suppliers of packaged seafood,” Acting Assistant Attorney General Andrew Finch said in a May 8, 2017, press release. “The division, along with our law enforcement colleagues, will continue to hold…
The Second Circuit has upheld the $50 million settlement of an alleged milk price-fixing conspiracy, holding that “[b]y their nature, settlements are compromises that do not provide either side with all that they might have hoped to obtain in litigation.” Haar v. Allen, No. 161944 (2d Cir., order entered April 18, 2017). The class action asserted that Dairy Farmers of America, Inc., Dairy Marketing Services and Dean Foods Co. conspired to suppress competition and fix prices of raw milk in the Northeast. The appellants argued that the settlement was the result of collusion between class counsel and opposing counsel and that members of the class were coerced into participation. The Second Circuit disagreed, finding the appellants confused “counsel’s willingness to negotiate in good faith toward a settlement with collusion,” noting that the district court found no evidence of impropriety after a lengthy hearing into claims of misconduct. The court also…
Walter Scott Cameron, a former senior vice president of sales at Bumble Bee Foods, LLC has pleaded guilty to combination and conspiracy to fix, raise and maintain the prices of packaged seafood, including canned tuna. U. S. v. Cameron, No. 16-CR-0501 (N.D. Cal., information filed December 7, 2016). The criminal information accuses Cameron of conspiring with other seafood companies to fix prices of seafood sold in the United States. "Today’s charge is the first to be filed in the Antitrust Division’s ongoing investigation into price fixing among some of the largest suppliers of canned tuna and other packaged seafood,” said an attorney with the U.S. Department of Justice’s Antitrust Division in a December 7, 2016, press release. “All consumers deserve competitive prices for these important kitchen staples, and companies and executives who cheat those consumers will be held criminally accountable.” Issue 625
The U.S. Department of Justice (DOJ) has intervened in an ongoing series of lawsuits against Tri-Union Seafoods, StarKist and Bumble Bee Foods alleging the companies conspired to set prices for tuna in the United States. In re Packaged Seafood Prods. Antitrust Litig., 15-2670 (S.D. Cal., order entered January 20, 2015). A California federal court granted the government’s unopposed motion to intervene at a status conference with attorneys representing several consumer and competitor plaintiffs in the consolidated action. The court found “common questions of law and fact between this civil action and an ongoing criminal grand jury investigation” conducted by the DOJ and accordingly granted a stay in the case. Details about the consolidation appear in Issue 588 of this Update and additional information on lawsuits brought by grocers appears in Issues 574 and 590. Issue 591
Three major grocers—Albertsons Companies, Hy-Vee and The Kroger Co.—have reportedly filed a lawsuit against three tuna companies alleging they conspired to fix prices of canned tuna. The companies join other grocers and consumers in pursuing damages from Tri-Union Seafoods, Starkist and Bumble Bee Foods for alleged price fixing, a practice the plaintiffs argue began in 2008 and continued until July 2015. See Undercurrent News, January 11, 2016. Details about lawsuits by other grocers appear in Issue 574 of this Update, while information about the consolidation of the suits by the U.S. Judicial Panel on Multidistrict Litigation appears in Issue 588. Issue 590
Nine putative class actions and 44 related cases alleging that StarKist Co., Bumble Bee Foods LLC and Tri-Union Seafoods LLC conspired to fix prices of canned tuna have been consolidated by the U.S. Judicial Panel on Multidistrict Litigation. In re Packaged Seafood Prods. Antitrust Litig., No. 15-2670 (S.D. Cal., order entered December 9, 2015). The court found that the actions "share factual questions arising out of an alleged conspiracy by defendants—the three largest producers of packaged seafood products in the U.S. with an alleged collective market share of more than 70%—to fix prices of packaged seafood products." The court also noted that the issue is "the subject of an ongoing criminal investigation by the U.S Department of Justice." Additional details about one of the proposed class actions appears in Issue 574 of this Update. Issue 588
The Ninth Circuit Court of Appeals has rejected Stanislaus Food Products Co.’s attempt to revive a lawsuit alleging that several major manufacturers of tin cans conspired to cede the market to a single company, USS-POSCO Industries (UPI). Stanislaus Food Prods. Co. v. USS-POSCO Industries, No. 13-15475 (9th Cir., order entered October 13, 2015). “This appeal, which centers on tin mill products used to package food, teaches that there’s no substitute for concrete evidence,” the decision begins. Stanislaus, a tomato cannery, alleged that UPI, a joint venture of U.S. Steel and POSCO America Steel Corp., conspired with other tin mill producers to allocate the tin can market to UPI and fix the prices of tin mill products. Stanislaus cited the fact that POSCO never entered the western U.S. market as evidence of conspiracy; the court considered the practicality of the allegations and found them lacking. “A scheme like Stanislaus alleges would not…
