Red Lobster's 'Everyday $20 Ultimate Endless Shrimp' promotion has become the focal point of a lawsuit filed by the restaurant chain's creditors against former controlling shareholder Thai Union, a seafood producer with shares traded on Thailand's stock exchange [1]. The lawsuit, filed in Orange County, Florida in May 2026, alleges that Thai Union was aware of Red Lobster's significant financial challenges and impending insolvency as early as 2023, yet continued to push for contracts that benefited itself at the expense of the restaurant chain [1].
According to the suit, Thai Union allegedly required Red Lobster to purchase increasing quantities of shrimp at above-market prices and prohibited a competitor from supplying the chain. The lawsuit further claims that Thai Union and then-interim CEO Paul Kenny orchestrated and maintained the 'Endless Shrimp' promotion despite objections from Red Lobster employees not affiliated with Thai Union. This resulted in restaurants running out of shrimp, being unable to turn over tables, and ultimately left Red Lobster with a massive oversupply and financial losses [1].
Red Lobster defaulted on a $275 million term loan from Fortress Investment Group in September 2023 and filed for Chapter 11 bankruptcy protection in May 2024, closing restaurants across the U.S. The company exited bankruptcy in September 2024 after being acquired by RL Holdings, a private investor group reportedly led by Fortress, which still owns Red Lobster [1]. Thai Union divested its stake in May 2024 and, according to the lawsuit, did not contribute any capital during the bankruptcy process [1].
The lawsuit seeks a jury trial to determine damages, alleging that Thai Union treated Red Lobster as a distribution arm for its own products and prioritized its interests over the restaurant chain's financial health [1]. Red Lobster has since brought back the endless-shrimp promotion as a limited-time offer, though the cost was not disclosed [1].
CONCLUSION
The lawsuit against Thai Union highlights the alleged mismanagement and self-dealing that creditors claim contributed to Red Lobster's bankruptcy. With new ownership under RL Holdings, the chain is attempting to recover, but the legal battle underscores the significant financial and operational challenges Red Lobster has faced.