Class action lawsuit against StarKist, Bumble Bee, and Chicken of the Sea has come to a conclusion with a settlement, providing compensation for consumers affected by price-fixing schemes involving canned and pouched tuna products. The lawsuit, which spanned several years, accused the tuna giants of conspiring to inflate prices from 2011 to 2015, and has now resulted in a $152.2 million settlement for affected parties.
Allegations, Price-Fixing Scheme Exposed
The lawsuit, filed in 2016, centers around allegations that StarKist, Bumble Bee, and Chicken of the Sea engaged in a price-fixing conspiracy to artificially inflate the price of packaged tuna products. The plaintiffs—both end purchasers and direct purchasers—argue that these actions led to consumers paying significantly higher prices than they would have in a competitive market.
The lawsuit is part of a broader investigation into price-fixing within the canned tuna industry, which included federal charges against several executives, including the former President of Bumble Bee, Chris Lischewski, who was sentenced to prison for his role in the scheme.
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Settlement, What It Means for Affected Consumers
The StarKist and Bumble Bee settlements, which combined with the earlier Chicken of the Sea settlement, total an impressive $152.2 million. This settlement aims to compensate end-purchaser plaintiffs (consumers) who purchased packaged tuna products from StarKist, Bumble Bee, and Chicken of the Sea between June 1, 2011, and July 1, 2015.
How Much Will Consumers Receive?
Eligible class members who submit a valid claim form can expect a pro-rated payment, estimated to be around $24.50 for every 200 cans of tuna purchased, or roughly $0.12 per can. The amount ultimately depends on the total number of claims filed and the volume of products included in each claim. However, any claim that totals less than $5 will not be paid.
Who Is Eligible for Compensation?
To qualify for compensation, individuals must meet the following criteria:
Purchased packaged tuna products in cans or pouches smaller than 40 ounces for personal consumption (not for resale) between June 1, 2011, and July 1, 2015.
Individuals who purchased directly from the tuna companies (known as “direct purchasers”) must file a claim on a separate website.
How to File a Claim
Consumers who believe they are eligible for compensation must file a claim form by December 31, 2024. Claims can be submitted online or via mail, and no proof of purchase is required to file. If a person has already filed a claim under the Chicken of the Sea settlement, they do not need to file again for the new settlements.
Legal Proceedings and Settlement Approval
The settlements with StarKist and Bumble Bee were officially approved by the U.S. District Court for the Southern District of California. The companies have denied the allegations of price-fixing but opted to settle to avoid the risks associated with further litigation and potential jury verdicts.
The StarKist settlement alone includes a payment of $130 million, while Bumble Bee’s parent company, Lion Capital, agreed to contribute $6 million. These settlements combined with the $16.2 million from Chicken of the Sea form the total $152.2 million settlement fund.
Final approval hearing: November 22, 2024 (The judge will review the settlement terms)
No additional opt-out opportunity: Those who opted out of the earlier settlements are excluded from the current class action.
Timeline of Legal Meliorations
May 2016: The class action lawsuit is filed.
July 2019: The court certifies the class of end-payer plaintiffs.
2020-2021: Several executives face criminal charges, including Chris Lischewski, former CEO of Bumble Bee, who is sentenced to 40 months in prison.
2023: Settlements with StarKist and Bumble Bee are agreed upon.
December 31, 2024: The deadline to file claims.
Impact on the Tuna Industry
The settlement marks a significant resolution in a long-running legal fight and has profound implications for the canned tuna industry. The case highlighted widespread anti-competitive practices in the food sector, with many companies now more aware of the scrutiny their pricing practices could face. This case also underlines the importance of maintaining fair competition in the marketplace to protect consumers.
FAQs
Who are the defendants in the case?
The defendants in the case are StarKist, Bumble Bee, and Chicken of the Sea, along with their parent companies. These companies are accused of participating in a price-fixing conspiracy that inflated the price of canned and pouched tuna products.
What were the key legal developments in the case?
In July 2019, the Court certified a class of End Payer Plaintiffs (EPPs).
The Ninth Circuit Court of Appeals affirmed the class certification in April 2022.
The U.S. Supreme Court declined to review the case in November 2022, effectively allowing the case to proceed.
What is the significance of the settlement?
The settlement, which totals $152.2 million, provides compensation to consumers who purchased the affected tuna products during the class period. The defendants, StarKist, Bumble Bee, and Chicken of the Sea, settled the case to avoid the risks of an adverse jury verdict, high trial costs, and further litigation.
What are the major dates for the lawsuit?
The class period for the purchases runs from June 1, 2011 to July 1, 2015.
The deadline to file a claim is December 31, 2024.
The objection and opt-out deadlines for the settlement have already passed.
How does the settlement compare to other similar lawsuits?
This settlement is part of a broader effort to address price-fixing within the canned tuna industry. The case follows criminal charges and other class action lawsuits against the same companies, with StarKist and Bumble Bee facing significant legal and financial consequences, including fines and the imprisonment of executives.
Conclusion, What’s Next?
While the StarKist and Bumble Bee settlements have brought closure to many consumers who were affected by the price-fixing scheme, the legal ramifications will continue to shape industry practices for years to come. With $152.2 million allocated for settlement, impacted consumers should take the necessary steps to file a claim before the December 31, 2024 deadline. The official settlement website provides guidance on how to submit a claim and updates on the legal process. If you want to know more, visit the official settlement website. It has instructions on how to make a claim and news about the legal process.
