A U.S. federal court judge has granted preliminary approval on a settlement for a price-fixing lawsuit leveled against buyers of Dungeness crab in California, Washington, and Oregon.
Northern District of California Judge Alex G. Tse approved three settlements in the lawsuit, which was brought by Brand Little and Robin Burns. Tse approved a collective payment of USD 2.25 million (EUR 1.93 million) from three of the smaller crab buyers, who shared 5.27 percent of the Dungeness crab market during the period: Pacific Dream Seafood, Caito Seafood, and Fisherman’s Choice.
As part of the settlement agreement, the three companies have agreed to cooperate with the plaintiffs “in their continued prosecution of the case against the remaining defendants.” According to a release by Gross Klein PC, the law firm representing Little and Burns, the proceeds of the settlement will be used to cover out-of-pocket costs, “with no portion being paid to the attorneys representing the plaintiffs and class.”
According to the court order, Pacific Dream will contribute USD 1 million (EUR 858,000), Caito will contribute USD 1.25 million (EUR 1.07 million), and Fisherman’s Choice – which only has 0.14 percent market share – will cooperate with the plaintiffs only.
“These settlements represent an important first step, in our efforts, to get a fair shake for the men and women who put their lives on the line to put crab on our tables,” Attorney Stuart G. Gross of Gross Klein PC said. “We look forward to continued success in prosecution of their claims.”
The lawsuit by Little and Burns follows an earlier lawsuit brought by Little against Pacific Seafood, filed in March 2023, which alleged Pacific Seafood engaged in anticompetitive behavior and suppressed the price paid to fishermen for Dungeness crab. That lawsuit was dismissed in May 2024, but Tse – who also presided over that case – gave the plaintiffs the chance to amend the claims.
Little did so, and filed the new lawsuit in 2024, with Little and 1,400 independent commercial crabbers participating. The latest lawsuit has survived motions to dismiss, and alleges the defendants, lead by Pacific Seafood, created a pricing cartel to artificially fix and control the ex-vessel price paid to crabbers “since the beginning of the 2015/16 season.”
“As a result of the buyers’ conspiracy, plaintiffs allege that crabbers were paid far less than they would have for the crab they risk their lives to catch, while the buyers – who are quintessential middlemen, selling the crab on to others – took an enormous, unfair, illegal, and unearned portion of the profit,” Gross Klein said early in the case.
Companies involved in the lawsuit have pushed back against the claims of price fixing in the lawsuit, with Pacific Seafood repeatedly calling the accusations baseless in court filings.
