StarKist ordered to pay $100 mln criminal fine for fixing tuna prices (updated)

Dongwon Industries

11/09/2019 20:45

(Adds details on ruling, background on dispute, DOJ and
StarKist comment)
    By Diane Bartz
    WASHINGTON, Sept 11 (Reuters) - A U.S. judge ordered
StarKist Co to pay a $100 million criminal fine for working with
other companies to fix the prices of canned tuna, the Justice
Department said on Wednesday.
    The company agreed in October to plead guilty to fixing
canned tuna prices from late 2011 to late 2013.  urn:newsml:reuters.com:*:nL2N1WY1JT The
company was also put on 13 months probation, the department
said.
    "Hard-working Americans deserve the benefits of open
competition when they spend their hard-earned money on items
that stock kitchen shelves," Makan Delrahim, head of the Justice
Department's Antitrust Division, said in a statement.  
    StarKist said in a statement that the sentencing, by U.S.
District Judge Edward Chen in San Francisco, resolved all of its
outstanding criminal antitrust issues.
    "We have cooperated with the (Justice Department) during the
course of its investigation and accept responsibility," said
Andrew Choe, StarKist president & CEO. "We have addressed the
necessary actions required in this agreement and we will
continue to strengthen related compliance best practices."  
    The canned tuna market in the United States has long been
dominated by three companies. Thai Union's  TU.BK  Chicken of
the Sea is the largest, followed by Bumble Bee Foods LLC and
StarKist. In December 2015, the Justice Department stopped Thai
Union Group from buying Bumble Bee.
    Bumble Bee is controlled by private equity firm Lion Capital
and StarKist by South Korea's Dongwon Industries Co  006040.KS .
    Bumble Bee agreed in May 2017 to plead guilty to one count
of fixing the prices of canned tuna and to pay a criminal fine
of $25 million. Two Bumble Bee executives also agreed to plead
guilty to price-fixing, as did one StarKist executive.
    StarKist has also settled antitrust lawsuits brought by
consumer groups and WalMart.

 (Reporting by Diane Bartz; Editing by David Gregorio)
 ((Diane.Bartz@thomsonreuters.com; 1 202 898 8313;))