CLARIFICATION – Based on information in the lawsuit, we initially reported that Gregory Dunlop and Seth Dunlop are employees of Cooke Seafood. The company says they are not Cooke employees, and were not at the time the lawsuit was filed.

NEW YORK, N.Y. (WAVY) — A lawsuit alleges that Cooke Seafood of New Brunswick, Canada is violating federal law under the American Fisheries Act because a foreign company controls its fishing operations in the Chesapeake Bay.

The menhaden fishing operation that eventually became Omega Protein began in Reedville in the Northern Neck nearly 150 years ago. Cooke Seafood purchased Omega in 2017, with the menhaden operation continuing as Ocean Harvesters.

According to the lawsuit, Cooke established a Delaware firm to “create a complex corporate structure designed to circumvent longstanding regulations mandating that fishing vessels operating in U.S. waters must be owned and controlled by American citizens or entities.”

“What we should have is an independent U.S. company controlling these fishing operations, with the profits staying in the United States,” lead plaintiffs’ attorney Brandon Demay of New York City-based Holwell, Shuster and Goldberg LLC said Thursday afternoon.

Omega boats operate in the Chesapeake Bay as Ocean Harvesters. The company gave 10 On Your Side this statement in response:

“Ocean Harvesters believes the recently filed lawsuit is without merit and will vigorously defend against all allegations of wrongdoing. As this case proceeds, we look forward to establishing that accusations of failure to disclose appropriate information are inaccurate. Ocean Harvesters is committed to compliance with all applicable laws and to continuing to conduct responsible, sustainable fishing operations along the Atlantic coast and in the Gulf of Mexico.”

Omega converts menhaden into protein-rich supplements and pet food additives. At one time, the East Coast had about a dozen menhaden operations, but Omega is the last one standing in the region.

Seth Dunlop and his father Gregory are among several defendants. The Dunlops are both U.S. citizens, but the lawsuit states that the Canadian company is in control.

“The law says if day-to-day practical control is exercised by a foreign entity — by Cooke — then that’s in violation of the law,” Demay said.

In the past, Bay residents and environmentalists have criticized the company after net breaks led to fish kills, including one in July 2022 on the Eastern Shore.

In addition to the Reedville location, another Cooke company, Wanchese Fish Company, handles seafood other than menhaden from a location in Suffolk, and Demay said Alpha, the parent company of Ocean Harvesters and of several defendants, shares the Suffolk location.

“When you have the foreign entity and the supposedly independent U.S. entity using the same office space, that’s an indication that the U.S. entity is not truly independent,” Demay said.

An Ocean Harvesters spokesman pointed out that ever since the lawsuit was originally filed in June 2021, the U.S. Maritime Administration (MARAD) determined that Cooke was eligible to document its fishing vessels, and added that Omega is the largest minority and union employer in Northumberland County.

Demay doesn’t expect the lawsuit to go to court for at least a year, and said he expects Cooke to file a response in the coming weeks. If Cooke were found in violation under the American Fisheries Act, the penalty can reach $150,000 per vessel per day.