SEARS, DUPONT AND OTHERS OPPOSE MULTI-DISTRICT SETTLEMENT FOR AIR CARGO SERVICES
February 22, 2016
Sixty seven companies — including Sears, DuPont and General Electric Co., have objected to the proposed disbursement of settlement funds in multidistrict litigation accusing cargo carriers of fixing prices on global air cargo services, claiming they have been denied their portion of the payout. The settlement class includes all persons or entities that purchased airfreight services for shipments to, from, or within the U.S. directly from any of the defendants or their parents or subsidiaries between January 1, 2000 and September 11, 2006.
The Claimants argue in their petition that a contractual relationship existed between the claimants and the carriers — despite services in some instances being brokered via freight forwarders — thus likening the relationship to that of a ticket purchaser and an airline, even if the passenger purchased the tickets via a third party. The lawsuit dates back from multidistrict litigation from 2006, when consumers brought more than 90 lawsuits against dozens of airlines following investigation findings of collusion and price-fixing by the air freight industry released by the U.S. Department of Justice and the European Commission. All indirect purchaser lawsuits were dismissed by the United States Second Circuit Court of Appeals in 2012 after finding that allegations of price fixing claims were preempted against foreign carriers under state antitrust laws.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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