PORTLAND, Maine, Jan. 6, 2025 — Lobster 207, a co-op formed by the Maine Lobstering Union, is pleased to announce that it has emerged with a more than a $5 million settlement in its favor after five years of litigation against a former CEO, Warren Pettegrow, his parents, their companies and another alleged co-conspirator. The Maine Lobstering Union (MLU) Local 207 is an affiliate of the 600,000-member IAM Union.
In its complaint and subsequent pleadings filed with the United States District Court for the District of Maine, Lobster 207 alleged that by means of a procession of schemes, rackets, and misrepresentations, the defendants had engaged in a course of misconduct that resulted in serious economic injuries to Lobster 207. The amount of today’s public settlement between the parties speaks to the significance of those asserted injuries.
During the course of the lawsuit, the federal court directed an independent arbitrator to determine whether Warren Pettegrow’s discharge as Lobster 207’s CEO was justified. The arbitrator sided with Lobster 207, finding that “it is clear Warren Pettegrow is competing with his own company… [and] breached the loyalty he owed Lobster 207.” This competition “constitutes acts of dishonesty and gross misconduct, both of which are terminable offenses.” The case was returned to the federal court for a jury trial to resolve the remaining allegations against all defendants. This settlement on Jan. 3, 2025, concludes the case in its entirety and came on the eve of jury selection.
“This settlement underscores the importance of holding individuals accountable and protecting the hard-earned livelihoods of Maine’s lobstering community,” said IAM Union Eastern Territory General Vice President David Sullivan. “The Maine Lobstering Union and Lobster 207 co-op reaffirm our commitment to safeguarding members’ interests and ensuring transparency and integrity in the lobster and fishing industry. We view this as a victory not only for Maine Lobstering Union Local 207, but for lobstermen throughout Maine.”
The Maine Lobstering Union Local 207, affiliated with IAM, launched Lobster 207 in 2017 as a cooperative to empower local fishermen and provide fairer pricing. Pettegrow was appointed CEO following the co-op’s acquisition of the wholesale division of Trenton Bridge Lobster Pound. Concerns over financial misconduct surfaced in 2019, prompting an independent forensic audit resulting in Pettegrow’s dismissal.
“The Maine Lobstering Union Local 207 welcomes this settlement and will stand strong against any threats to our lobster industry,” said Maine Lobstering Union Local 207 President Joel Strout. “Now that this chapter has closed, we remain focused on dealing with current issues related to federal regulations, rising industry costs, climate change, and threats from overseas fisheries. Our union will fight to protect lobster fishermen and our coastal communities.”
“Lobster 207 remains committed to growing and protecting the lobster industry while restoring the trust of all Maine lobstering men and women,” said Lobster 207 CEO Mike Yohe. “After five long years, the settlement gives me a profound sense of relief, like a heavy burden finally lifted. Now, Lobster 207 can achieve our mission of bringing fairness and transparency to the marketplace. Lobster 207 is the only union-based cooperative in the lobster industry, owned and operated by the folks who know Maine lobster best—the Lobstermen of the Maine Lobstering Union.”
Since 2013, the Maine Lobstering Union Local 207 members have been fighting to preserve and improve a lobster industry in Maine that generates approximately $1.4 billion annually and supports the livelihoods of 4,500 lobstermen and thousands of Mainers employed through lobster dealers and seafood processors, vessel and trap manufacturers, restaurants, and other coastal businesses.
“The IAM applauds Lobster 207 and Maine Lobstering Union members for their dedication to pursuing justice,” said IAM Union International President Brian Bryant. “The IAM remains committed to our support for worker-led organizations and will continue providing the necessary resources to achieve fair practices in the lobster and fishing industry.”
The Maine Lobstering Union (MLU) is a division of IAM District 4 and the only association-based cooperative in the lobster industry owned and operated by Maine lobstermen. The MLU supports Maine’s lobster community and is committed to the sustainability and safety of Maine’s lobstermen and women and all wildlife that occupy and rely upon the fishery.
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