South Carolina Judge Dismisses Lawsuit Over Restaurants’ Alleged Shrimp Mislabeling

A federal judge has dismissed a lawsuit filed by the South Carolina Shrimpers Association against dozens of local restaurants accused of deceiving customers by serving imported shrimp while implying they were locally caught.

U.S. District Judge Richard Gergel ruled that the association failed to demonstrate legal standing or prove how the restaurants’ actions directly harmed the association or its members. The ruling deals a significant blow to the “Shrimpgate” case that had attracted substantial attention in the state’s coastal communities.

“The Amended Complaint does not identify a single customer who withheld or canceled business with Plaintiff,” Judge Gergel wrote in his decision. “Nor does it specifically allege any number of diverted sales or loss of goodwill and reputation directly attributable to Defendants’ alleged misrepresentations regarding the origins of their shrimp.”

The lawsuit, filed in June 2025, followed an investigation by SeaD Consulting that claimed 40 out of 44 tested restaurants in Charleston were selling imported shrimp. The consultancy alleged these establishments misled consumers “in their branding, menu descriptions, or proximity to local docks,” creating the impression that foreign-sourced seafood was caught locally.

The association had pursued claims under both the federal Lanham Act and the South Carolina Unfair Trade Practices Act, arguing that restaurants were undermining local shrimpers’ livelihoods by passing off cheaper imported products as premium local catch.

Erin Williams, Founder and COO of SeaD Consulting, had previously stated that such practices were “decimating the entire regional economy and culture they’ve worked for generations to build and promote.”

The ruling represents a victory for the restaurants that faced potentially significant legal and reputational damage. Defense counsel Robert Wyndham celebrated the dismissal, telling local media: “This case was baseless from the very beginning. It was a harmful and unfounded attack on dozens of hardworking local business owners who not only serve the Charleston community day in and day out, but also contribute greatly to our local economy.”

The case highlights ongoing tensions in coastal seafood markets, where domestic shrimpers face intense competition from lower-priced imports. South Carolina’s shrimping industry, once a cornerstone of coastal communities, has struggled in recent decades against a flood of foreign shrimp that often sells at significantly lower prices.

In response to the dismissal, the South Carolina Shrimpers Association expressed profound disappointment, arguing that consumers and honest businesses would suffer as a result of the ruling.

“This ruling hurts shrimpers, consumers, and the many honest restaurants that work hard to serve you real local shrimp,” the association said in a statement. “Once again, it feels like big money is winning over the truth.”

Bryan Jones, Vice President of the association, told local television station WCSC that the ruling sends a troubling message about accountability in the food supply chain. “When we see recalls of imported shrimp for things like banned chemicals and even radioactive isotopes, and then a court denies us the chance to litigate the proof of fraud, it sends a clear message: big money and deception matter more than our families and the safety of your food.”

The association has indicated it is considering further legal options and plans to continue its fight for transparency in seafood sourcing. “Our fight is far from over,” their statement concluded. “We are committed to protecting our fleet, ensuring your food safety, and supporting the good businesses doing the right thing.”

The case reflects broader national concerns about seafood fraud and mislabeling. Similar investigations in other coastal regions have revealed widespread practices of substituting cheaper imported seafood for locally caught products, raising questions about consumer rights, economic impacts on domestic fisheries, and food safety regulations.