Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Asiana Airlines offers to settle air cargo price fixing action for $55M, (Oct 15, 2014)

By Linda O’Brien, J.D., LL.M.

Asiana Airlines has agreed to pay $55 million to settle allegations in multi-district litigation that the company conspired with other airlines to fix the prices of air freight shipping services, according to the plaintiffs’ motion for preliminary approval of the settlement filed in the federal district court in Brooklyn, New York (In re Air Cargo Shipping Services Antitrust Litigation, Case No. 06-MD-1775.).

Direct purchasers of air freight shipping services filed a series of class action suits against Asiana Airlines and other airlines, alleging that the carriers conspired to unlawfully fix the prices of air freight shipping services worldwide, including cargo shipments to and from the United States by concertedly levying artificially inflated surcharges. After extensive negotiations, the plaintiffs and Asiana reached a settlement on October 10, 2014, and the plaintiffs moved for preliminary approval of the settlement agreement.

Pursuant to the terms of the settlement, Asiana will pay a total of $55 million, plus an additional $200,000 for notice and administration costs. In their motion, the plaintiffs state that the parties have reached an agreement that maximizes the plaintiffs’ recovery and provides cooperation from Asiana in the prosecution of their claims against the remaining defendants. Having negotiated a substantial cash settlement and other benefits, the plaintiffs have avoided the potential risks inherent in complex antitrust litigation and secured a favorable settlement for the class.

Additionally, the proposed settlement exceeds the standards for preliminary approval, according to the settling parties. The settlement is the result of arms-length negotiations conducted by highly experienced counsel and falls within the range of possible approval as fair, adequate, and reasonable. Finally, the plaintiffs are seeking certification of the class for purposes of the settlement.

Attorneys: Robert Kaplan, Gregory K. Arenson, Elana Katcher, and Gary L. Specks (Kaplan Fox & Kilsheimer LLP) and Hollis Salzman and Meegan Hollywood (Robins, Kaplan, Miller Ciresi LLP) for the plaintiffs. Ian Simmons (O’Melveny & Myers LLP) for Asiana Airlines.

Companies: Asiana Airlines

News: Antitrust NewYorkNews