Wegmans’ fish broker pushes back against copycat claims

The Wegmans fish broker named in a lawsuit accusing the retailer of unfairly copying an existing Manhattan fish market has now filed a counterclaim calling those accusations “baseless.” 

The New York-based law firm Gross Shuman P.C. filed counterclaims Thursday on behalf of Culinary Collaborations, Wegmans’ fish broker, as well as two other fish distributors, Culimer USA and Red Shell Sushi.

The initial lawsuit, filed Feb. 9 in New York County Supreme Court by Yuji Haraguchi, accused the three distributors and Wegmans Food Markets of unfair competition and of poaching Haraguchi’s business secrets connected to his fish market, Osakana. Haraguchi also claims the supermarket chain is in breach of a non-disclosure agreement and a non-compete agreement — both of which were signed via Culinary Collaborations — along with a signed letter of intent. Haraguchi is seeking at least $1 million in damages.

Last year, Haraguchi decided to sell Osakana, which first opened in 2016. In the lawsuit, Haraguchi alleges that three companies — Culimer USA, Red Shell Sushi, and Culinary Collaborations — gained knowledge of secrets related to his business via that potential sale and then brought those secrets to Wegmans, according to the lawsuit. In October, Wegmans opened its Manhattan store with its own fish market, Sakana, which Haraguchi claims is a direct copy of his business, located just blocks away.

Related:Wegmans sued over fish market at new Manhattan store

According to the new counterclaim, the decision to back out of the sale was Haraguchi’s choice. The counterclaim also accuses Haraguchi of leveraging false accusations against both Wegmans and the suppliers of fraud, trademark infringement, and unfair competition.

But Haraguchi says that’s inaccurate. He says he was not the first to back out, that the sale was canceled by Red Shell Sushi without notice or a reason.

In a statement, Kevin Burke, one of the lawyers representing the three suppliers, called Haraguchi’s lawsuit “baseless and retaliatory.” 

The counterclaim seeks, among other remedies, a permanent injunction “to bar Osakana and its agents, including Haraguchi, from further misleading the public.”

When asked to comment on the counterclaim, Haraguchi stood by his own claim, that the fish suppliers named in the lawsuit violated a non disclosure agreement in order to give his business secrets to Wegmans. “We, minority owned small businesses, have the right to raise our voices and defend ourselves without fearing retaliation by giant corporate bullies,” he said via email. “My personal experience with Sakanaya by Wegmans is a testament to this struggle. The counterclaims filed by the defendants do not justify their unethical, unfair, and dishonest practices against us. Instead, they further prove that such misconduct was indeed committed.”  

Related:Petition to shut down Wegmans’ fish market gets 4,000 signatures

Wegmans is not represented in the counterclaim. According to a statement from the retailer:

“Wegmans has worked with Uoriki, a leading fishmonger and retailer at the Toyosu Fish Market (and its predecessor Tsukiji Fish Market) in Japan, since 2009. They have helped us elevate our seafood and sushi program across our stores and, together, we’ve co-hosted more than a dozen Japanese Seafood and Sushi Festivals at select Wegmans stores over the last 14 years. In 2022, we began working with Uoriki to develop a unique concept for our seafood and sushi program at our future Astor Place store. In early 2023, following a trip to Japan, work began to make Sakanaya (Japanese for fish market) the centerpiece of our Astor Place seafood department. In mid-June, supply chain and training plans were finalized as we prepared for a mid-October opening. 

We are proud of what we have achieved in partnership with Uoriki. We remain confident the lawsuit filed against us is without merit and have filed a motion to dismiss the complaint in its entirety.” 

Burke told Supermarket News that one of his clients, Red Shell Sushi, was close to finalizing a deal last year to buy Osakana when Haraguchi unexpectedly canceled any further negotiations without explanation. He also added that the timeline for Wegmans to create its own fish market was well underway before the negotiations with Red Shell Sushi.

“The plaintiffs believe that by including Wegmans in this meritless action, they will force a settlement in their favor,” Burke added. “Nothing could be further from the truth.”