BANGKOK (Reuters) – A Thai court on Tuesday accepted a class action lawsuit against food giant Charoen Pokphand Foods for causing environmental damage from the rapid spread of an invasive fish species, a lawyer for the plaintiffs told Reuters.
CP Foods is part of agro-industrial conglomerate Charoen Pokphand Group, which owns the country’s second-largest mobile network and largest convenience store operator.
The case is being brought by 10 fishermen from Samut Songkhram, a province by the Gulf of Thailand, known for its fishing industry.
The class action, a rare legal procedure in Thailand, centres around the blackchin tilapia, a fish native to West Africa, which was brought to Thailand a decade ago. They prey on shrimp and snail, disrupting Thai aquaculture industry and native ecosystems.
The action is seeking 2.4 billion baht ($70.9 million) in damages, lawyer Sittiporn Lelanapasak said.
The plaintiffs allege that CP’s actions linked to the import of the invasive species created environmental damage, diminishing the ecosystem that subsequently negatively impacted the fishermen livelihoods
CP Foods denies the allegations.
“The company’s operations are not the source of the issues raised…the determination of the company’s guilt or liability will be made after thorough examination of the evidence in court,” it said in a statement.
The court accepting the class action was seen as a positive sign and could encourage legal action from other farmers, Sittiporn said.
The company’s shares were down 2.08% against a benchmark drop of 0.90%.
(Reporting Chayut Setboonsarng; Editing by Angus MacSwan)
