A federal appeals court has signaled skepticism regarding a defamation lawsuit brought by New England fishing businesses and trade groups against the Monterey Bay Aquarium. The court expressed concerns that the case could have significant implications for free speech.

During oral arguments on July 26, Judge Seth Aframe of the 1st U.S. Circuit Court of Appeals stated that the claim does not appear to be a strong defamation case and that he finds the lawsuit "troubling from a First Amendment perspective." He added, "The more you broaden the class of people that fall within this, the more it feels like everybody can sue."

The lawsuit was filed after the aquarium's Seafood Watch conservation program placed American and Canadian lobster on its "red list" in 2022, advising consumers to avoid the product. Seafood Watch cited the threat posed to rare whales, such as the North Atlantic right whale, by potential entanglement in fishing gear used in the lobster industry.

Plaintiffs, primarily from Maine's lobster fishing industry, argue that the Seafood Watch designation inaccurately portrays the industry as a threat to whales, constituting defamation that has caused economic harm. They contend that whales face greater threats from other fishing sectors, including the Canadian snow crab fishery.

Conservation groups maintain that both lobster and crab fisheries pose risks to whales, a position acknowledged by government agencies that have identified entanglement in fishing gear as a critical threat to these animals.

An attorney for the plaintiffs, Kevin Lipson, asserted that the Monterey Bay Aquarium did not disclose countervailing evidence in its Seafood Watch report and, in fact, "hid that evidence."

Seafood Watch is a widely cited sustainability report, influencing purchasing decisions for many restaurants and retailers. Following the red listing, some major retailers, including Whole Foods, announced they would stop carrying Gulf of Maine lobster.

An attorney for the Monterey Bay Aquarium, Amy Saharia, stated during oral arguments that Seafood Watch did not single out any specific plaintiffs with direct references. The aquarium declined to comment further.

A lower federal court had previously ruled that the lawsuit could proceed, prompting the aquarium's appeal. Lobster fishing is a significant economic and cultural component of Maine's economy. In the previous year, Maine fishermen caught over 78 million pounds of lobster, valued at more than $460 million at the docks.