Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Ocean shipping purchasers seek final approval of $197M settlement in price fixing action, (Oct 7, 2015)

By Linda O’Brien, J.D., LL.M.

In an action by a group of businesses against several freight forwarding companies around the world for allegedly conspiring to fix prices of international ocean shipping services, the purchasers of freight forwarding services are seeking final approval of 11 separate settlements totaling $197.6 million against the remaining defendant companies, according to a motion for final approval of the second round of settlements filed in the federal district court of Brooklyn, New York (Precision Associates, Inc. v. Panalpina World Transport Ltd., October 5, 2015).

A group of businesses filed a class action in 2008 against various domestic and foreign freight forwarding companies for allegedly conspiring to fix prices of international ocean shipping services in violation of Section 1 of the Sherman Act. In August 2013, the court granted final approval of settlements with ten defendants. In April 2015, the plaintiffs moved for preliminary approval of the settlements with the remaining 11 defendants.

The plaintiffs are seeking final approval of the proposed settlements under which the defendants will pay $197.6 million to be distributed among the class in exchange for full and complete release of all claims, ending the long-running litigation.

According to the memorandum in support of the plaintiffs’ motion, the proposed settlements are procedurally fair and reasonable. The settlements were reached in good faith after extensive arm’s-length negotiations between experienced and informed counsel. Class counsel has decades of experience with antitrust class action litigation and zealously represented the interests of the class during settlement negotiations.

Additionally, the settlements were fair, reasonable, and adequate in light of the (1) complexity, expense, and likely duration of the litigation; (2) reaction of the class in its unanimous support of the settlements; (3) amount of discovery completed; (4) risks of establishing liability and damages; (5) ability of the defendants to withstand a greater judgment; and (6) reasonableness of the settlement fund, the motion states.

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

Companies: SDV Logistique Internationale; Panalpina World Transport Ltd.; Geodis S.A.; DSV A/S; Jet Speed Logistics, Ltd.; Toll Holdings, Ltd.; Agility Logistics Corp.; United Parcel Service, Inc.; Dachser GmbH & Co., KG; Hankyu Hanshin Express Holding Corporation; Deutsche Post AG

News: Antitrust NewYorkNews