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Air India to pay US$12.5 million penalty to settle US price-fixing lawsuit
AIR India has become the 28th and last defendant to settle in the multi-district Air Cargo Shipping Services Antitrust Litigation, agreeing to pay US$12.5 million to direct purchasers of air cargo shipping services, according to plaintiffs' lawyer Michael Hausfeld.
After 10 years involving tens of thousands of lawyer hours and accumulated more than $1.23 billion in settlements, the class action suit against the world's top airlines has finally drawn to a close, said IHS Media.
Air New Zealand, which settled for $35 million earlier this month, was heading for a September trial, but with all co-defendants having given up, they caved too. Once the court approves the settlements the long-running case will be concluded.
The class-action suit was brought by direct purchasers of air cargo shipping services for shipments to or from the US between January 2000, and October 2006, who have been seeking compensation for overcharges sustained as a result of a price-fixing conspiracy. The conspiracy involved fuel and security surcharges.
The lawsuit began in February 2006, following raids by government investigators worldwide. Mr Hausfeld said criminal prosecutions by the US government resulted in over $1.8 billion in fines, but no restitution for victims.
Instead, compensation for the customers overcharged by the price-fixing conspiracy came from the settlements achieved in the civil litigation.
Some of the settlements have resulted in huge amounts. Korean Air paid the largest fine at $115 million with Polar Air paying $100 million.
After 10 years involving tens of thousands of lawyer hours and accumulated more than $1.23 billion in settlements, the class action suit against the world's top airlines has finally drawn to a close, said IHS Media.
Air New Zealand, which settled for $35 million earlier this month, was heading for a September trial, but with all co-defendants having given up, they caved too. Once the court approves the settlements the long-running case will be concluded.
The class-action suit was brought by direct purchasers of air cargo shipping services for shipments to or from the US between January 2000, and October 2006, who have been seeking compensation for overcharges sustained as a result of a price-fixing conspiracy. The conspiracy involved fuel and security surcharges.
The lawsuit began in February 2006, following raids by government investigators worldwide. Mr Hausfeld said criminal prosecutions by the US government resulted in over $1.8 billion in fines, but no restitution for victims.
Instead, compensation for the customers overcharged by the price-fixing conspiracy came from the settlements achieved in the civil litigation.
Some of the settlements have resulted in huge amounts. Korean Air paid the largest fine at $115 million with Polar Air paying $100 million.
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