Canned tuna distributor pleads guilty to pricefixing

A canned tuna distributor agreed to plead guilty and cooperate in an ongoing investigation into price fixing in the packaged seafood industry, the U.S. Department of Justice announced Thursday.

StarKist Co. and co-conspirators colluded to fix prices as early as 2011 to 2013, according to the felony complaint filed in the Northern District in San Francisco.

“The conspiracy to fix prices on these household staples had direct effects on the pocketbooks of American consumers,” said Assistant Attorney General Makan Delrahim of the Justice Department’s antitrust division in a statement. “All Americans have the right to the benefits of free and open competition — the best goods and services at a price free from collusion.

StarKist managing agents discussed fixing, raising and maintaining the prices of canned tuna with other major packaged-seafood producing companies, according to the complaint.

The company and its co-conspirators also “negotiated prices with customers and issued price announcements” in accordance with mutual agreements, Leslie Wulff of the Justice Department wrote in the complaint. Federal prosecutors alleged a violation of the Sherman Antitrust Act. U.S. v. Starkist Co., 18-CR00513 (N.D. Cal., filed Oct. 18, 2018).

StarKist faces a fine of up to $100 million.

Wulff could not be reached for comment.

The probe has resulted in six charges thus far. Union Frozen Products confirmed the inquiry into the industry in 2015 when it delayed financing the acquisition of Bumble Bee Foods LLC because of the investigation.

Last year, Bumble Bee Foods agreed to pay at least $25 million to settle price-fixing charges. Two company executives pleaded guilty to felony charges of participating in the conspiracy.

Tri-Union Seafoods LLC announced last year it would cooperate in the investigation to avoid criminal prosecution.

“StarKist is committed to being a socially responsible company and doing the right thing…,” said StarKist President Andrew Choe in a statement. “While this process is long-term in nature, we have addressed the necessary actions required in this plea agreement, including continuing to strengthen related compliance best practices.”