MOUNT PLEASANT — The S.C. Shrimpers Association is suing the 40 unidentified Charleston-area restaurants that were recently found to be selling imported shrimp following a genetic study by a Texas-based research firm.
The federal complaint, filed June 13 on behalf of the association by attorney Gedney Howe IV, accuses the restaurants of false advertising and violating South Carolina's Unfair Trade Practices Act.
That statute states that knowingly misrepresenting food as a South Carolina-produced product is an unfair trade practice.
Joined by representatives and chefs from nearby restaurants, Howe and association leaders announced the lawsuit from the humid docks of Shem Creek.
"These boys don't want a lot. They just want to be able to work and earn a living and continue the work that their parents and grandparents that came before them did," Howe said.
The defendants, called John Doe Restaurants 1-40 in the complaint, were secretly tested by SeaD Consulting, a Texas-based research firm, in late May.
A team took small samples of cooked shrimp sold by the restaurants, some of which were labeled on menus as being wild-caught in the United States. Some locations were selected for using shrimp boats and other imagery. The 40 establishments named in the lawsuit were found to be selling imported shrimp, not U.S.-caught shrimp.
Because SeaD Consulting did not release the names of the 40 restaurants they claimed were misleading consumers on June 10, it’s unclear if all the defendants were publicly advertising local, wild-caught shrimp but serving the imported product.
A representative for SeaD Consulting said the company had not seen the lawsuit and declined to comment.
The complaint alleges that passing off imported, farm-raised shrimp as wild-caught threatens to "irreparably harm the strong reputation and customer goodwill" earned by South Carolina shrimpers.
Rocky Magwood, president of the S.C. Shrimpers Association and a fourth-generation shrimper, said he has spent his entire life fighting to keep the industry alive. He hopes the testing results, and the subsequent lawsuit, can change the tide for the dying industry.
"Now that we we have some proof ... hopefully we can get something to come out of this, because it's wrong," Magwood said. "It's been a long time coming."
The association is seeking monetary damages, an amount to be determined at trial, as well as an injunction against the 40 restaurants. The injunction would prohibit restaurants from labeling imported or farm-raised shrimp as wild-caught or local, Howe said.
Restaurant community reacts
For many, the genetic testing results published June 10 by SeaD Consulting were shocking. For others, the fact that only four of the 44 restaurants sampled served wild-caught shrimp came as no surprise.
Kerry Marhefka, a biologist and member of the South Atlantic Fishery Management Council, suspected that if every restaurant in the tri-county area were to be tested, the ratio would be about the same.
"It's a huge problem, and it's not just shrimp," Marhefka said.
There are reasons for serving imported seafood, Marhefka said, whether it's access or cost of goods. But the issue in this case, she said, is whether some restaurateurs are lying about what's on their menus.
"Don't try to pass off to the public that it's local when it's not," Marhefka said. "The key is to be honest."
She does have one concern about the study: By not naming the supposed offenders, researchers have put the entire restaurant industry on the defensive to say they are not one of the 40, Marhefka said.
Allison Cagle, an owner of The Wreck of the Richard and Charlene restaurant off Shem Creek, said the seafood establishment tucked away on Haddrell Street in Mount Pleasant has "only ever served locally sourced shrimp right here from our South Carolina shrimpers."
"While we were very happy with the testing, finally, it was the manner in which the results were reported, I was kind of shocked," she said. "The exclusion felt purposeful, even though I'm quite sure it wasn't, but there are a lot of people in this area serving nothing but great locally-sourced shrimp."
Local purveyors like Tarvin Seafood have taken to social media to highlight the many restaurants that do serve local shrimp. Still, the news has sent waves of chatter through the dining community.
"I know a lot of restaurants here in Charleston are probably using the shrimp that are being outsourced. They get at a cheaper price, but at the end of the day, it's hurting our families that are around here," said Grant Smith, director of restaurants for Miller's All Day.
Parker Milner contributed to this report.