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Air Cargo

Between at least January of 2000 and February of 2006, major international cargo airlines from around the world conspired to inflate the price of shipping goods by air. The conspiracy increased global shipping prices, costing businesses and individuals that ship goods by air billions of dollars in damages. A dozen airlines have now pled guilty to antitrust violations in the United States for participating in the conspiracy, and over twenty airlines have been identified as conspiracy participants in the EU. Airlines that have pled guilty include Air France/KLM, British Airways, El Al, Japan Air Lines, Korean Air Lines, Martinair, SAS, Cargolux, and others.

Following raids by law enforcement agencies around the world on February 14, 2006, Hausfeld LLP attorneys filed class action lawsuits in the United States seeking to recover the damages inflicted by the conspiracy. The consolidated action, which is now pending in the Eastern District of New York, seeks damages for overcharges incurred with respect to air cargo shipments to, from and within the United States. The firm was appointed co-lead counsel for the class by the Court. In addition, due to Hausfeld LLP's foreign law expertise and European presence, the firm also was appointed foreign purchaser lead counsel.

Shortly after filing the lawsuits, Michael Hausfeld, Chairperson of Hausfeld LLP, negotiated an innovative settlement with Defendant Lufthansa, whereby the company paid $85 million to resolve its U.S. liability and agreed to provide extensive cooperation with the plaintiffs in the United States as they prosecute their claims against the other Defendants. Hausfeld LLP represents both large corporate purchasers of air shipping services such Volvo, H&M, and IKEA, as well as small and medium sized companies. We represent clients headquartered in the United States, Europe, South America, India, and China.

On August 21, 2009, the court denied the defendants’ motion to dismiss the complaint, holding that “the admissions of price-fixing by so many of the defendants certainly ‘are suggestive enough to render a § 1 conspiracy plausible.’” The court also rejected the defendants’ argument that claims involving import commerce were barred by the Foreign Trade Antitrust Improvements Act. The case will now proceed into the discovery phase.

In addition to its work in the United States, Hausfeld LLP’s London affiliate, Hausfeld & Co., has filed an action in the High Court in London, Emerald Supplies, Ltd. et al. v. British Airways, seeking to recover damages incurred by shippers who shipped goods by air to, from, and within the European Union. This action is being pursued on a representative basis on behalf of all entities that elect to join the case. As in the United States, Hausfeld LLP represents both smaller businesses who overpaid as a result of the conspiracy and major corporate purchasers of air freight shipping services, such as Universal Music and Dana Corp., that suffered tens of millions of dollars of damages as a result of the cartel's activities.

The Air Cargo action in the United States is being litigated primarily by Michael D. Hausfeld, Bill P. Butterfield, and Brent W. Landau.  The action in the United Kingdom is being litigated by Vincent Smith, Anthony Maton, and Scott Campbell.

 

Practice Areas: Antitrust / Competition

Related News

» American Airlines Agrees to Cooperate with European Shippers in Case Against Air Cargo Cartel

Related Press Releases

» BA BRINGS 32 OTHER AIRLINES INTO ITS LONDON AIR CARGO LITIGATION
» AIR FRANCE –KLM SETTLES ITS US AIR CARGO CARTEL CLAIMS FOR $87M BUT OFFERS ITS EUROPEAN INDIRECT PURCHASER VICTIMS NOTHING

Supporting Documents

» Order re: Motions to Dismiss (PDF)
» Consolidated Amended Complaint (PDF)

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