Clearwater Seafoods named in California lawsuit
HALIFAX — Clearwater Seafoods of Nova Scotia is one of five seafood companies named in a lawsuit, filed by the State of California, alleging they failed to properly label certain products that contain traces of lead or cadmium.
Other companies named in the suit are Pacific American Fish Company (PAFCO), Seaquest Seafood Corporation and Jayone Foods Inc. of California, and Rhee Bros. Ltd. of Maryland.
According to The Associated Press and several trade publications, the lawsuit was filed Dec. 29 by California Attorney General Xavier Becerra. The suit claims the firms violated the state’s Proposition 65 law which requires companies to give a clear and reasonable warning if products contain any of a long list of harmful chemicals.
In other company news, shareholders of Clearwater Seafoods Inc. voted at a special meeting on Thursday to approve the previously announced plan to sell the company under the terms of the Canada Business Corporation Act.
FNC Holdings Limited Partnership, representing a coalition of Mi’kmaq First Nations, and Premium Brands Holdings Corp. will acquire all of the issued and outstanding common shares of Clearwater at a price of $8.25 per share (about $1 billion) through a new equally owned corporation, 12385104 Canada Inc.
Approval of the arrangement under the Competition Act was received on Wednesday. Clearwater is seeking a final order of the Supreme Court of Nova Scotia to approve the arrangement on Friday.
Subject to the issuance of the final order, the arrangement is expected to close and take effect on or about Jan. 25.
Upon the closing of the arrangement, registered shareholders of Clearwater must submit their share certificates along with a duly completed letter of transmittal in order to receive the cash consideration under the arrangement.
Clearwater describes itself as one of North America’s largest vertically integrated seafood companies and the largest holder of shellfish licences and quotas in Canada. It specializes in global sales of premium wild, eco-certified seafood, including scallops, lobster, clams, coldwater shrimp, langoustine, whelk and crab.