A cooperative of fishermen known as Lobster 207 says it has reached a $5 million settlement in a years-long case against its former CEO, Warren Pettegrow, and his family members.
The cooperative sued Pettegrow, his parents and another conspirator five years ago, alleging they submitted fraudulent invoices, embezzled funds and stole products that were then sold to Lobster 207 members at a premium.
Michael Yohe, CEO of Lobster 207, said the case was initially set to go to trial, with jury selection scheduled for this week. But he told reporters during a virtual press event Tuesday that the co-op is relieved that the litigation is over.
"We were prepared for a trial. It appears that we don't have to do that," Yohe said. "It's just a new start for us."
The Maine Lobstering Union, a division of the International Machinists Union, affiliated with the Lobster 207 Co-Op nearly eight years ago. Union officials said Tuesday that much of the settlement money will cover the costs of litigation.
An attorney for the Pettegrows said Tuesday afternoon that the family agreed to the settlement to allow everyone a chance to move on after years of highly contested litigation.
"The Pettegrows vehemently deny the contentions in this suit and that they engaged in any wrongdoing," attorney David Ginzer said in an emailed statement. "However, they sought to resolve this action to move forward in a positive way and avoid the uncertainties of continued litigation. The Pettegrows are focusing on their family and continuing to serve the fishermen and greater community that Trenton Bridge has served since 1956."
