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A federal appeals court has ruled against a Maine lobster industry coalition in its lawsuit challenging the Monterey Bay Aquarium Foundation’s decision to give the U.S. lobster fishery a “red” rating on its Seafood Watch list, which advises consumers on seafood sustainability.

The U.S. Court of Appeals for the First Circuit reversed a lower court ruling that had allowed the lawsuit to proceed, directing that the complaint be dismissed. The industry coalition argued that the Aquarium’s assessment unfairly portrayed Maine lobstermen as contributors to the decline of the endangered North Atlantic right whale and misrepresented scientific evidence about the fishery’s practices.

The dispute stems from concerns about right whale entanglement in fishing gear and related litigation over federal protections for the species. In response to these concerns, the Aquarium downgraded its rating for U.S. lobster, citing insufficient measures to reduce entanglement risks. The Maine lobster industry maintained that the rating harmed its reputation and contributed to lost customers, including retailers that stopped purchasing Maine lobster.

The appeals court focused on defamation law, finding that the Aquarium’s statements about the broader lobster industry were not actionable under existing legal standards. The decision also has implications beyond seafood, as media organizations supported the Aquarium’s appeal over concerns that allowing the lawsuit to proceed could weaken First Amendment protections for reporting and commentary about entire industries.

The ruling highlights the potential legal and reputational consequences of sustainability ratings and public criticism of seafood production and harvesting practices. For aquaculture producers and seafood businesses, it underscores the importance of credible scientific information, transparent sustainability practices, and effective communication with consumers and retailers.