A $2 billion “False Claims Act” lawsuit alleging “figurehead fraud” against the Canadian seafood giant Cooke Inc. of St. John, New Brunswick, and Omega Protein and Ocean Harvesters of Reedville was “dismissed in full” on Jan. 6 in the United States District Court for the Southern District of New York in Manhattan.
The “relators” (plaintiffs), Chris Manthey and W. Benson Chiles, sued “on behalf” of the United States government, including Maritime Administration (MARAD) of the United States Department of Transportation and the United States Coast Guard (USCG). MARAD is the agency that determines whether applicants satisfy American Fisheries Act (AFA) vessel citizenship requirements. The U.S. Government, MARAD and USCG were not plaintiffs in the lawsuit.
The suit alleged Cooke Inc., Omega Protein, Alpha VesselCo. Holdings Inc. and others, violated the AFA (1998) and Jones Act (1920) that allows only U.S. citizens to fish in U.S. waters.
Lawsuit dismissed
Judge Jesse M. Furman, who has been on the court since 2012, dismissed all of the alleged complaints and allegations. “For years, federal regulators have repeatedly found Ocean Harvesters to meet the relevant requirements to lawfully engage in commercial fishing activities,” stated a press release from Ocean Harvesters. “Through the lawsuit, the ‘relators’ attempted to supplant this regulatory regime by substituting their judgment for the considered views of federal officials.
“In dismissing the lawsuit, the court concluded that the False Claims Act does not permit the relators to do that, as they failed to meet the foundational requirements of even alleging that the companies deprived the U.S. Government of money or property.”
“We are pleased that the court has dismissed this baseless lawsuit,” said Ben Landry, spokesman for Ocean Harvesters. “The decision underscores our commitment to full compliance with federal laws and regulations, and vindicates the integrity of our operations. From the outset, we have been transparent with regulators.”
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