EUROPE
« In The NewsAmerican Airlines Agrees to Cooperate with European Shippers in Case Against Air Cargo Cartel
American Airlines and its parent company, AMR Corporation, have agreed to settle their US liability arising out of the global cartel in air freight services. Under the settlement, which was made public earlier this week, American will provide cooperation that can be used in actions pending outside the US.
This announcement comes after another settlement earlier this month with the Air France-KLM group. Air France-KLM agreed to pay $87 million to direct purchasers of air freight services to, from or within the US but gave nothing to shippers who purchased indirectly through a freight forwarder. American’s cash payment of $5 million will likewise go only to direct purchasers, but unlike any of the other settlements reached to date, its cooperation can be used by European shippers as well.
Also earlier this month, British Airways, which faces a case filed in the English High Court by Hausfeld & Co LLP, brought American, AMR, and thirty other carriers into the proceedings in a move to protect itself against any payments it is compelled to make as a result of the English action. The case alleges that the cartel, which existed at least from January 2000 until late 2006, forced shippers to pay inflated prices in the form of cargo surcharges.
As part of this week’s settlement, American will provide information and evidence in the form of witnesses, documents, electronic data and meetings with counsel, all of which can be used in “the prosecution of the Claims under the law, code, or
regulations of any jurisdiction other than the United States.” This means that European shippers will have the benefit of American’s cooperation as they pursue their own litigation against cartel members. Other shipper actions are pending in Australia, Canada, New Zealand and South Korea.
Michael Hausfeld, who serves as co-lead counsel in the US litigation and also represents shippers in Europe, commented as follows:
“This settlement marks the first time that an airline has agreed to cooperate in the prosecution of these cartel claims outside the United States. It is an important step forward for shippers in Europe and around the world and demonstrates that companies can act responsibly to resolve competition disputes without resorting to excessive or protracted litigation.”
Hausfeld has signed a formal co-operation agreement with Claims Funding international (“CFI”) to co-ordinate the pursuit of claims for shippers within the EU. Between them Hausfeld and CFI separately represent some US$5 to 6 billion of combined air cargo traffic purchased by shippers in the cartel period located on multiple continents, including several among the Fortune Global 500 and Forbes Global 2000, as well as both the Business Week and Interbrand 100 Best Global Brand. These companies have claims for compensation in Europe resulting from the loss they suffered as a result of the actions of the cartel.
The European Commission has still not delivered a decision on the cartel despite having investigated it since December 2007.
Further information can be viewed at www.aircargoclaims.eu. or at http://www.claimsfunding.eu.
Contacts: Anthony Maton 020 7665 5000
Scott Campbell 020 7665 5000
Michael Hausfeld +1 202 540 7200
About Hausfeld & Co LLP and Hausfeld LLP
Hausfeld & Co LLP, led by industry doyen Michael Hausfeld, is widely recognised as one of the leading and best-known claimant law firms in the world. It is at the forefront of numerous innovative legal actions that are expanding the quality and availability of legal recourse for aggrieved individuals and businesses around the world.
The partners of Hausfeld LLP have obtained numerous landmark judgments and settlements for individuals and businesses, and have been champions for the private enforcement of competition and antitrust laws globally for almost four decades.
For further information please visit: www.hausfeldllp.com
More information on this case: Air Cargo
Practice Areas: Antitrust / Competition
