Red Lobster’s infamous Endless Shrimp deal is back in headlines, and this time, the lawsuit is serving more than seafood. The Red Lobster GUC Trust, created during the chain’s 2024 bankruptcy process, is accusing former majority shareholder Thai Union Group of “self-dealing and exploitation of Red Lobster” through the beloved promotion that allegedly helped sink the company.
The complaint claims Thai Union, a publicly traded Thai seafood company that controlled Red Lobster from 2020 to 2024, “treated the Company as little more than a distribution arm for its own products, milking whatever value it could from Red Lobster, especially as the Company became insolvent.” In other words, the lawsuit alleges the shrimp deal was not just a fan-favorite gone wrong; it was a way to move Thai Union shrimp at Red Lobster’s expense.
The promo itself was easy to love. Endless Shrimp had been a legacy Red Lobster traffic-driver for years, offering customers unlimited shrimp for one set price. But when the “Everyday $20 Ultimate Endless Shrimp” deal became permanent in 2023, the math got messy. Reuters reported that Red Lobster later said the promotion caused $11 million in losses, while court filings also pointed to inflation, debt, rent costs, competition, and restaurant closures.
The lawsuit claims Thai Union and former interim CEO Paul Kenny pushed Red Lobster to buy excessive amounts of “overpriced Thai Union Shrimp,” while allegedly “gutting” senior leadership and limiting competing suppliers. Per SeafoodSource, bankruptcy filings previously said the promotion was made permanent “despite significant pushback from other members of the company’s management team.”
The complaint says the deal “turned a successful legacy Red Lobster strategy to drive traffic into its restaurants into a car crash,” alleging restaurants ran out of shrimp, tables did not turn fast enough, and customers shifted away from higher-priced menu items. The trust also accuses Thai Union of acting “grossly negligent,” in “bad faith,” breaching “fiduciary duties,” engaging in “civil conspiracy,” and creating a “culture of fear” to stop employees from pushing back. Thai Union has denied wrongdoing in connection with the bankruptcy-related allegations.
Ironically, Endless Shrimp returned on April 20, 2026, but this time as a limited-time, dine-in-only offer. Red Lobster CEO Damola Adamolekun said in the company’s official announcement, “This is about putting our guests first and bringing back something they truly love.”
Customers may have eaten well, but according to this lawsuit, Red Lobster may have been the one getting devoured.
