Chicken of the Sea International (COSI), the US seafood packaging subsidiary of Thai Union Group, announced it has settled the antitrust litigation cases against the company.
COSI was accused in 2017 of involvement in anti-competitive activity in the US tuna market, which led to the filing of a class action lawsuit by customers and consumers claiming compensation.
The company reached an agreement in principle to settle these remaining antitrust litigation cases. At this stage, all that remains is final US court approval of the settlement agreement negotiated and concluded by the parties.
"I am very pleased we have reached closure on all the outstanding elements surrounding the antitrust litigation. This has been a difficult period for everyone involved, but I am glad we were able to come to resolution with each of the plaintiffs," said Thiraphong Chansiri, president and chief executive of Thai Union (TU) Group.
"Now that this chapter is behind us, I am excited at the prospects for the future of our COSI brand, which has undergone many changes during the past few years and continues to grow as a leader in both the industry and community."
He said COSI continues to dedicate its efforts to serving its customers and working with its suppliers to strengthen and grow the category.
Mr Thiraphong says the litigation was a difficult period for everyone involved, but the company was able to come to resolution with each of the plaintiffs.
"COSI is positioned to do wonderful things in the future, through the development of product innovations like Infusions; leading the way in sustainability through its global SeaChange sustainability platform; being recognised as a category leader by industry publications; and partnering with food banks during the pandemic to distribute more than 3 million servings of protein to those in need," Mr Thiraphong said.
Anakepong Putthapibal, an analyst at Asia Plus Securities (ASP), said the end of the antitrust litigation case in the US against COSI and TU will not impact the company's operating results as TU set aside a full reserve for this litigation case since 2019, worth around 3 billion baht. He said the news will likely be positive for TU shares.
"We forecast TU's profit this year at about 6.4 billion baht, spurred by the demand for canned seafood during the lockdown period globally," said Mr Anakepong.
He said after the outbreak situation improves, demand for dining out will pick up, which is positive for Red Lobster seafood restaurants, which were recently acquired by TU. ASP gave TU a target price of 20 baht.
TU shares closed on Tuesday on the SET at 14.20 baht, up 30 satang, in trade worth 535 million baht.