Nippon Cargo Airlines Nearing Price-Fixing Class Action Settlement

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Nippon Cargo Airlines is working toward a class action settlement over allegations it conspired with other airlines to increase air cargo rates since 2000, according to a letter filed last week with a New York magistrate judge.

The parties indicated they have signed a memorandum of understanding and will soon file a formal class action settlement agreement with the court. The letter did not provide any details about the proposed air cargo price-fixing settlement.

In 2006, the U.S. Department of Justice and the European Commission launched an investigation into the air freight industry. The agencies said that a number of airlines conspired to determine the rates they should charge for certain routes. The alleged conspirators reportedly held conversations, meetings and engaged in other communications to set the rates, and conducted meetings in several countries to enforce the conspiracy. Numerous class action lawsuits were subsequently filed against dozens of airlines.

Due to the large number of class action lawsuits filed over the alleged conspiracy, the cases have been consolidated into multidistrict litigation (MDL) titled In re: Air Cargo Shipping Services Antitrust Litigation. To date, the defendants in the MDL have agreed to pay more than $835 million to escape the class action lawsuits.

The air cargo class action lawsuits were initially filed by both direct and direct purchaser plaintiffs. However, the indirect purchaser plaintiffs were dismissed from the MDL after an appeals court held that federal aviation law preempted price-fixing allegations from being brought against foreign airlines under state statutes.

In 2009, Nippon Cargo agreed to pay $45 million as part of a plea deal with the DOJ. Some of its former executives have been charged with fixing rates for air cargo shipments.

Further information about the Nippon Cargo price-fixing class action settlement was not immediately available. Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

The plaintiffs are represented by Hollis Salzman and Meegan Hollywood of Robins Kaplan Miller & Ciresi LLP, Robert N. Kaplan, Gregory K. Arenson and Gary L. Specks of Kaplan Fox & Kilsheimer LLP, Howard J. Sedran, Austin Cohen and Keith J. Verrier of Levin Fishbein Sedran & Berman, and Michael D. Hausfeld, Brent W. Landau, Hilary K. Scherrer and Melinda Coolidge of Hausfeld LLP.

The Air Cargo Price-Fixing Class Action Lawsuit is In re: Air Cargo Shipping Services Antitrust Litigation, Case No. 1:06-md-01775, in the U.S. District Court for the Eastern District of New York.