Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Freight companies agree to pay $100M to settle international ocean shipping price fixing litigation, (Apr 24, 2015)

By Linda O’Brien, J.D., LL.M.

In an action by a group of businesses against numerous freight forwarding companies around the world for allegedly conspiring to fix prices of international ocean shipping services, nine Japanese companies and their U.S. subsidiaries have reached an agreement to settle the businesses’ claims, according to the plaintiffs’ motion for preliminary approval of class action settlement filed in the federal district court in Brooklyn, New York. The plaintiffs also have moved for conditional certification of the settlement class (Precision Associates, Inc. v. Panalpina World Transport Ltd., April 22, 2015).

In the proposed settlement agreement, Hankyu Hanskin Express Holding Company, Japan Aircargo Forwarders Association, Kintetsu World Express, Inc., Kawasaki Kisen Kaisha, Ltd., MOL Logistics Co., Ltd., Nippon Express Co., Ltd., Nissin Corporation, Yamato Global Logistics Japan Co., Ltd., and Yusen Air & Sea Service, Inc. have agreed to pay a total of $100 million to resolve all claims on a collective basis. The defendants have also agreed to cooperate in the prosecution of antitrust claims against the two remaining defendants, including providing transactional data, information provided to regulatory authorities, and depositions of witnesses.

According to the memorandum in support of the motion, the settlement falls within the range of possible approval. The agreement was the result of arm’s length negotiations with the assistance of a highly experienced neutral mediator and after consultation with economic experts and evaluation of a broad array of factual, legal, and damage issues. The class counsel was well informed of the facts of the case and strengths of the claims asserted during settlement negotiations. Furthermore, the settlement agreement represents a significant recovery for the class.

The motion states that the settlement class satisfies the requirements for class certification under Federal Rule of Civil Procedure 23(a) of numerosity, commonality, typicality, and adequacy of representation. Finally, the requirements of Rule 23(b) have been met since common questions of law and fact predominate over individual questions and a class action is superior to other methods for the fair and efficient adjudication of the controversy.

According to the proposed order, the settlement class should include all persons who directly purchased freight forwarding services for shipments within, to, or from the United States, or purchased or sold in the United States regardless of shipment location, from any of the defendants or their affiliates from January 1, 2001 to January 4, 2011.

The case is No. 08-CV-00042.

Attorneys: Christopher Lovell (Lovell Steward Halebian Jacobson LLP), Steven N. Williams (Cotchett, Pitre & McCarthy), W. Joseph Bruckner (Lockridge Grindal Nauen P.L.L.P.), and Daniel E. Gustafson (Gustafson Gluek PLLC) for Precision Associates, Inc.

Companies: Precision Associates, Inc.; Hankyu Hanskin Express Holding Company; Japan Aircargo Forwarders Association; Kintetsu World Express, Inc.; Kawasaki Kisen Kaisha, Ltd.; MOL Logistics Co., Ltd.; Nippon Express Co., Ltd.; Nissin Corporation; Yamato Global Logistics Japan Co., Ltd.; Yusen Air & Sea Service, Inc.

News: Antitrust NewYorkNews