Thai Union Faces $295 Million Red Lobster Suit Over $20 Shrimp Deal
Updated
Updated · Bloomberg · Jun 25
Thai Union Faces $295 Million Red Lobster Suit Over $20 Shrimp Deal
2 articles · Updated · Bloomberg · Jun 25
Summary
Creditors owed about $295 million when Red Lobster filed for bankruptcy in 2024 have sued Thai Union Group and certain executives, seeking a jury trial and monetary damages.
The previously unreported lawsuit alleges the $20 all-you-can-eat shrimp promotion was not a simple misstep but part of a scheme to “squeeze every drop of value” from the restaurant chain for Thai Union’s benefit.
Red Lobster’s unlimited-shrimp deal had already been seen as a promotion that helped tip the iconic U.S. seafood chain into bankruptcy; the suit reframes it as deliberate value extraction by its then-owner.
The case raises the stakes around Red Lobster’s collapse by shifting focus from operational blunder to alleged owner misconduct, with potential recovery now tied to litigation against Thai Union.