Red Lobster Lawsuit: Endless Shrimp Sank Chain?

A lawsuit filed by shareholders alleges that Thai Union Group, a former majority owner, exploited Red Lobster through financially unsound contracts that primarily benefited Thai Union. The core of the complaint centers on the "Ultimate Endless Shrimp" promotion, which shareholders claim was made permanent in 2023, transforming a profitable seasonal offer into a significant financial drain. This decision led to approximately $11 million in losses for Red Lobster within a single quarter. The legal action, initiated in May 2024, seeks substantial damages for shareholders and aims to reverse $32 million in transactions from 2023. The lawsuit asserts that Thai Union pushed for these actions after gaining majority control in 2020, leading to a strategy that shareholders describe as a "car crash."