The Maine Lobstering Union’s cooperative, Lobster 207, recently closed a significant chapter with a settlement exceeding $5 million, marking the end of a five-year legal battle against its former CEO, Warren Pettegrow, and his family.
This victory represents not only a financial win but also a pivotal moment in the co-op's mission to uphold fairness in Maine's famed lobster industry.
According to Maine Biz, the dispute began after Lobster 207 purchased the wholesale division of Trenton Bridge Lobster Pound in 2017, bringing Warren Pettegrow on as CEO. The Pettegrows agreed to step away from the wholesale business to avoid competition with Lobster 207. However, by 2019, allegations of financial misconduct and breaches of this agreement surfaced, leading to a lawsuit in federal court. The co-op accused the Pettegrows of fraudulent practices, which included issuing false invoices and competing directly with the business they had sold to Lobster 207.
The legal confrontation reached an end earlier this month when both parties agreed to a settlement. David Sullivan, the eastern territory general vice president for the International Association of Machinists, confirmed this "global" settlement, which Seafood Source shared was valued at over $5 million. The settlement brings resolution to claims that the Pettegrows defrauded the union of nearly $2 million.
Joel Strout, President of Local 207, expressed the union’s resolve in the face of adversity, stating, “The Maine Lobstering Union Local 207 welcomes this settlement and will stand strong against any threats to our lobster industry.” This sentiment reflects the cooperative's broader commitment to maintaining a fair and transparent marketplace amidst ongoing challenges such as regulatory changes and environmental pressures.
Lobster 207’s CEO, Mike Yohe, echoed this optimism, highlighting the cooperative's determination to rebuild and move forward. “Though it’s over, it’s a new start for us,” Yohe remarked during a press conference.
As the dust settles, questions remain about how the settlement funds will be utilized. Sullivan pointed out that the co-op is still facing substantial expenses from the prolonged litigation. However, the union's leadership is confident that this resolution will allow them to focus on the future, tackling industry challenges head-on.
Lobster 207’s case shows the stark importance of vigilance and accountability in the lobster industry, which generates approximately $1.4 billion annually and supports the livelihoods of thousands of Mainers. As the only union-based cooperative in the industry, Local 207 plays a crucial role in advocating for the interests of Maine’s lobstermen and the coastal communities that depend on them.
This legal victory is a testament to the strength of the industry, reaffirming the cooperative's commitment to upholding the values that have long defined Maine’s fishing heritage. With the settlement behind them, Lobster 207 is poised to navigate the future with renewed focus and determination.
About Lobster 207
Lobster 207 began in 2013, when they approached Machinists Union – IAM, District 4 about falling catch prices threatening the lobster industry. With IAM District 4, they met with hundreds of lobstermen from up and down the coast of Maine, forming the Maine Lobstering Union, Local 207.
They have a wholesale operation in Trenton, Maine. They sell and ship their own lobsters. Today, 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 Local 207.
