Yahoo Finance Fishy business: Salmon farmers accused of inflating prices in new £382m class action
Six of the world’s top salmon producers have been hit legal action in the UK over alleged collusion and unlawful price-fixing of its Atlantic farmed product.
The case was filed to the Competition Appeal Tribunal (CAT) against Mowi, its subsidiary Mowi Holdings, SalMar, Lerøy, Scottish Sea Farms and Grieg as a collective action.
The six companies are all prominently involved in the global farmed Atlantic salmon market, and are major suppliers of farmed Atlantic salmon to UK supermarkets.
According to the claim, these companies are alleged to have worked together to increase the price of farmed Atlantic salmon through various methods.
The defendants are accused of manipulating benchmark prices for Norwegian Atlantic salmon by using related entities to purchase salmon at inflated prices, and unlawfully exchanging commercially sensitive information about the price and volumes of sales of farmed Atlantic salmon.
It is also alleged that senior executives at rival companies planned to rig prices via email correspondence, and at various meetings and “working dinners”.
The claim seeks to established that this was cartel behaviour and a breach of competition laws.
This legal action alleges that the behaviour it alleges drove farmed Atlantic salmon prices up to 20 per cent higher than they otherwise would have been over the course of the alleged conspiracy.
Law firm Simmons & Simmons is leading this litigation, which is said to be for up to 44m UK consumers, seeking as much as £382m. Simmons & Simmons lead partner is Patrick Boylan, who has barristers from Brick Court Chambers Sarah Abram KC and Matthew Kennedy as well as Camilla Cockerill from 4 New Square Chambers.
Waterside Class and its sole director Anne Heal has lent its name to the claim. Heal was a former director of regulatory affairs at BT and managing director of strategy at Openreach.
This case is funded by commercial litigation funder, an Isle of Man-based protected cell company Erso Capital PCC.
Commenting on the case, partner Boylan said: “Competition laws are there to protect everyone. Thankfully, we have a fast-evolving collective proceedings regime to help vindicate consumers’ rights.”
“We are looking forward to working with Waterside and Anne Heal to bring this claim against Mowi, SalMar, Lerøy, Scottish Sea Farms and Grieg in respect of their alleged unlawful conduct” he added.”
It is to be noted that this lawsuit is different than several UK supermarket giants bounding together in March to launch its class action against different Atlantic salmon framers, accusing them of operating a cartel-like operation. That case which includes Asda, Iceland, Marks & Spencer and others is being led by law firm Stephenson Harwood.
