Column: This government price-fixing case makes the tuna industry sound like the mafia

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Secret meetings, whispered threats -- the price-fixing case against tuna companies sounds like a mafia story.

Heather Sears has been fishing for salmon out of this unassuming coastal community for nearly two decades.Lischewski sounded an early warning at an industry conference in 1999, upbraiding industry leaders for a relentless battle for market share that had discounted prices by as much as 31%. “Rather than focus on innovation and growth,” he said,filed by a coalition of tuna wholesalers and distributors, “the three major brands have fought an ‘unwinnable’ war to steal shares from one another.

In the charges filed against the companies in 2016 and 2017, the government asserted that they went further by actively conspiring to fix prices from late 2010 through 2013 at repeated meetings among high-level executives at industry conferences and meetings at a San Diego restaurant. Wholesalers, retailers and other plaintiffs who filed scores of civil lawsuits alleged the plot may have continued longer.

The government pointed to several joint marketing schemes that either predated or occurred during the criminal conspiracy. These included a joint decision in 2008 to downsize the cans to 5 ounces, a “Tuna the Wonderfish” promotional campaign resembling the dairy industry’s “Got Milk” ad campaign and an agreement between Bumble Bee and Chicken of the Sea to share each other’s packing facilities in Georgia and Santa Fe Springs.

FCF’s offer would cover Bumble Bee’s assets, the $17 million owed to the government, and about $640 million in outstanding debt. Notably, it doesn’t provide for plaintiffs’ damages. Where that leaves the plaintiffs is unclear. “We intend to be active in the bankruptcy process to ensure that it is fair for all creditors,” Christopher Lebsock, an attorney for the plaintiffs, told me by email.

 

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