The Maine Lobstering Union has reached a $5 million settlement with its former CEO, according to officials with the group.
The union, comprised of Maine lobstermen who have pooled their resources to operate a lobster wholesale business, sued Warren Pettegrow and Pettegrow’s parents more than five years ago in federal court.
The union purchased the Pettegrows’ Trenton-based wholesale business in 2017 for $4 million, and hired Warren Pettegrow as its CEO. Pettegrow and his parents, longtime owners and operators of Trenton Bridge Lobster Pound, later were accused by the union of embezzling funds, submitting fraudulent invoices, “up-charging” for lobster products and violating the sale contract by operating a competing wholesale business.
Among the accusations in the union’s 56-page complaint was that the Pettegrows had engaged in racketeering against the union and its members by committing a series of thefts and fraud from March 2017 to April 2019.
Though technically not a union, as its members all are self-employed, the cooperative is affiliated with the International Association of Machinists and Aerospace Workers union which, as a labor organization, is protected from alleged racketeering under the federal RICO statute.
“The lawsuit, filed in federal court, alleged a series of schemes and misconduct resulting in economic harm to the cooperative,” the union said Monday. “The settlement, finalized on Jan. 3, 2025, concludes the case and reflects the importance of transparency and accountability in Maine’s lobster industry.”
The union was expected to hold a press conference Monday afternoon about the settlement.
The Pettegrows’ attorney, Jason Barrett of Ellsworth, did not immediately respond to a message seeking comment about the settlement.
