Bangor Daily News

Lawsuit from NY restaurant accuses salmon farmers of price fixing

Lori Valigra

May 10, 2019
A steakhouse in western New York filed a 75-page lawsuit in U.S. District Court in Maine on Thursday against 15 producers of farmed salmon, including Ducktrap River of Maine in Belfast.

Prime Steakhouse of Falconer, New York, is seeking class action status for the lawsuit and a jury trial. The restaurant alleges the 16 companies competed unfairly on price and were unjustly enriched since July 1, 2015.

The lawsuit is seeking damages to the maximum extent in each state listed in the suit, plus restitution and a loss of profits that the 15 companies are alleged to have obtained unlawfully.

The lawsuit is based largely on European Commission investigations of unexplained price increases in the salmon market.

In the filing, Prime Steakhouse cited a European Commission investigation started in early February 2019 with a letter to the world’s dominant suppliers of farm-raised salmon and their affiliates.

The letter said the European Commission had received information that the companies named as defendants in the lawsuit are participating in or have participated in anti-competitive agreements, concerted practices or both to coordinate prices for Norwegian salmon.

Ducktrap sells both farmed and wild-caught salmon. According to its website, it sources most of its salmon from its own farms in Scotland, Norway, Iceland and Chile.

A Ducktrap executive was not immediately available for comment.

The New York restaurant’s website menu lists only one grilled salmon dish. The source of the salmon and whether it is farmed or wild-caught is not evident from the menu.

Attorneys for the restaurant were not immediately available for comment.

A source knowledgeable with the lawsuit said it was filed in Maine because most of the other producers are located overseas.

Maine is one of the largest producers of farmed Atlantic salmon in the United States, according to National Geographic. However, this country isn’t a big player in the international market for the fish.

Farming salmon remains controversial in the state. Nordic Aquafarms of Norway opes to build a large salmon farming operation in Belfast that could produce tens of millions of pounds of fish annually. The company has been meeting with Belfast residents as it works to get key state permits to move its project forward. Nordic is not part of the lawsuit.

The other defendants are Mowi ASA (formerly known as Marine Harvest ASA), Marine Harvest USA, Marine Harvest Canada Inc., Grieg

Seafood ASA, Grieg Seafood BC Ltd., Bremnes Seashore AS, Ocean Quality AS, Ocean Quality North America Inc., Ocean Quality USA Inc., Ocean Quality Premium Brands Inc., SalMar ASA, Leroy Seafood Group ASA, Leroy Seafood USA Inc. and Scottish Sea Farms Ltd.

https://bangordailynews.com/2019/05/10/business/lawsuit-from-ny-restaurant-accuses-salmon-farmers-of-price-fixing/

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