Overview
- The suit, filed in May 2026 by a trust for Red Lobster creditors, accuses Thai Union of turning the $20 “Everyday Ultimate Endless Shrimp” promotion into a permanent, uneconomic menu item to boost its own shrimp sales.
- Creditors allege Thai Union pressured Red Lobster to buy rising volumes of its shrimp at above-market prices and blocked a longtime competitor, making Thai Union the chain’s primary shrimp supplier.
- The complaint says the promotion immobilized restaurants by causing frequent shrimp shortages and lower per-diner spending, and it cites a reported $11 million quarterly loss tied to the deal.
- Creditors are seeking a jury trial to recover about $295 million they say was owed when Red Lobster entered Chapter 11 in May 2024, and the suit will test whether related-party deals materially drove the chain’s insolvency.
- Red Lobster is now owned by RL Holdings/Fortress and is pursuing a turnaround under CEO Damola Adamolekun, who reintroduced Endless Shrimp as a limited-time offer in April, and observers say the case could reshape how suppliers with governance ties are treated in restructurings.