StarKist fined $ 100 million in connection with a tuna price setting operation



[ad_1]

Canned tuna giant StarKist was ordered Wednesday to pay a $ 100 million fine for its role in a pricing system for goods sold in the United States.

A federal judge in San Francisco has also sentenced the company to 13 months of probation, according to a statement from the Department of Justice.

"Today's results reflect our determination to aggressively enforce antitrust laws against price-setting companies," said Attorney General Makan Delrahim of the Antitrust Division of the Department of Justice. "Hard-working Americans deserve the benefits of open competition when they spend their hard-earned money on items that stock kitchen shelves.

OLD STARKIST TUNA EXEC PLAIDE TO FIX THE PRICE FIXING

The fine terminates StarKist's intervention in the DOJ's investigation and resolves any outstanding antitrust issues, the company said in a statement. "We will continue to conduct our business with the utmost transparency and integrity."

Last year, StarKist pleaded guilty to setting the price of the crime as part of a conspiracy involving rival tuna companies, Bumble Bee Foods and Chicken of the Sea. Federal prosecutors have claimed that StarKist conspired with others to set prices for canned tuna from November 2011 to December 2013.

"We cooperated with the Department of Justice during its investigation and took responsibility," said Andrew Choe, President and CEO of StarKist.

The company, which is owned by South Korean company Dongwon Industries, has asked Judge Edward Chen of the US District Court to reduce the fine to $ 50 million, saying the fine could result in bankruptcy. to the extent that it incurs other civil damages. Chen said that he had discovered that the company had assets and the opportunity to borrow money to pay.

The ploy was revealed when Chicken of the Sea tried unsuccessfully to buy in 2015 Bumble Bee Foods, a San Diego-based company. The leaders of Chicken of the Sea have alerted the federal authorities and agreed to cooperate to avoid criminal prosecution.

Bumble Bee pleaded guilty to the same charge as StarKist in 2017 and fined $ 25 million.

CLICK HERE FOR THE FOX NEWS APP

Two former executives of Bumble Bee and one of StarKist also pleaded guilty to setting price fixing charges. None of them has been sentenced.

Former Bumble Bee CEO Christopher Lischewski pleaded not guilty to a charge of pricing.

Associated Press contributed to this report.

[ad_2]

Source link