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Hausfeld LLP Announces Two Major New Settlements Totaling Over $150 Million in Air Cargo Cartel Case

Washington DC (June 7, 2011)   Hausfeld LLP, a global plaintiffs’ law firm dedicated to handling complex and class action litigation, announces that plaintiffs have reached an $89.512 million settlement with British Airways Plc (“BA”) and a $66 million settlement with Lan Airlines, S.A., Lan Cargo, S.A., and Aerolinhas Brasileiras, S.A. (“Lan/ABSA”) in In re Air Cargo Shipping Services Antitrust Litigation (pending in the Eastern District of New York).  The airlines have agreed to pay additional amounts for notice costs and will cooperate in the ongoing case against the remaining defendants.  Hausfeld LLP serves as Co-Lead Counsel in the case.
 
Michael Hausfeld, Chairman of Hausfeld LLP, commented:
 
“These two important settlements, returning over $150 million to claimants, represent yet another excellent result for the US class, which is fast approaching half a billion dollars in recoveries from settling defendants.  BA and Lan/ABSA have now taken an important step toward paying damages for their admitted price-fixing conduct.  We will continue our efforts to pursue recoveries for the huge number of victims of this cartel both in the US and around the world.  It is long overdue that the companies found to have engaged in price-fixing by public enforcement agencies make restitution to all of their victims, everywhere in the world.”
 
As reflected in the chart below, these are the tenth and eleventh settlements in the case so far, bringing the total recovery to over $430 million, with many other airlines remaining as defendants in the litigation.
 
Defendant
Settlement Amount
Lufthansa
85,000,000
Air France/KLM/Martinair
87,000,000
American Airlines
5,000,000
Japan Airlines
12,000,000
SAS
13,930,000
All Nippon Airways
10,400,000
Cargolux
35,100,000
Qantas
26,500,000
Thai Airways
3,500,000
British Airways
89,512,000
Lan/ABSA
66,000,000
Total
433,942,000
 
Nearly half of the original defendants in the civil action brought by Hausfeld LLP and other law firms have pled guilty to a conspiracy to fix the price of shipping goods by air to and from the United States.  The plaintiffs allege that the cartel increased global shipping prices.
 
Hausfeld LLP’s sister practice in London (Hausfeld & Co LLP) commenced proceedings on behalf of two lead claimants against British Airways in the English High Court on September 18, 2008 (Emerald v. BA).  Recently, the Court granted an Order for a further wave of 80 claimants to be added to the Emerald case, with further waves of claimants expected to join the fray shortly.  These include several among the Fortune Global 500 and Forbes Global 2000, as well as both the Business Week and Interbrand 100 Best Global Brand.  BA has also added all other airlines named in the European Commission’s decision, including Lan, as parties to the proceedings for the purposes of contributing towards BA’s total liabilities.
 
The new US settlements do not resolve BA’s or Lan’s liabilities in the pending European case.
 
Hausfeld LLP attorneys working on this case are Michael Hausfeld, Brent Landau, Hilary Scherrer, William Butterfield, and Melinda Coolidge.
 
For further information or to arrange interviews please contact:
Joy Bickelhaupt
Tel: 202-540-7157
jbickelhaupt@hausfeldllp.com
 
 

 

Related Case

» Air Cargo

 

Practice Areas: Antitrust / Competition