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StarKist Co. has agreed to plead guilty to setting the price of the crime as part of an extensive investigation into collusion in the canned tuna industry, the US Department of Justice said Thursday.
The DOJ has stated that StarKist faces a fine of up to $ 100 million at the time of conviction. Prosecutors allege that the three largest companies in the industry conspired between 2010 and 2013 to keep prices artificially high.
"We cooperated with the Department of Justice during its investigation and took our responsibilities," said StarKist General Manager Andrew Choe. "We will continue to conduct our business with the utmost transparency and integrity."
The Canadian press Two former executives of Bumble Bee and one of StarKist also pleaded guilty to setting price fixing charges. None of them has been sentenced.
StarKist belongs to the South Korean company Dongwon Industries, one of the largest tuna catching companies in the world. The parent company's website contains promises of ethical standards and good corporate citizenship.
The project was unearthed when the attempt by the Thai Union Group's Chicken of the Sea group to buy Bumble Bee, based in San Diego, failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to protect the company from criminal prosecution in exchange for their cooperation.
Last year, Bumble Bee Foods pleaded guilty to the same charge and fined $ 25 million, $ 111 million less than prosecutors had found. Prosecutors said they feared to put an end to Bumble Bee's financially troubled business and agreed to let the company make interest-free payments for five years.
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.
"The conspiracy to fix the prices of these staple goods has had a direct impact on the portfolios of US consumers," said Deputy Attorney General Makan Delrahim.
In addition, the three companies face a myriad of lawsuits from wholesalers, foodservice companies and retailers such as Walmart, Target and Kroger.
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