Air Cargo Price-Fixing MDL Trial Date Set

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A federal judge has set a trial date for the price-fixing global air cargo multidistrict litigation despite the holdouts of four airlines. U.S. District Judge John Gleeson rejected the summary judgment bids by Air China Ltd., Air New Zealand Ltd., Polar Air Cargo Inc. and Air India Ltd. and set a jury trial date for Polar on Jan. 25, 2016.

The Air Cargo MDL has accused the airlines of price-fixing fuel and security surcharges which is a violation of U.S. antitrust laws. Polar Air Cargo Inc. is one of 21 airlines which has pleaded guilty to price-fixing allegations and been subject to U.S. and Korean fines. However, Air India, Air China, and Air New Zealand have yet to enter a guilty plea.

Judge Gleeson stated that a jury verdict of one of the holdout defendants may suggest liability with other other three airline carriers, whose trial dates have yet to be determined.

According to the air cargo class action lawsuit, the defendants tried to downplay a “global conspiracy” of airline price-fixing by suggesting that emails and other communication between airlines did not prove that they were attempting to coordinate a price-fixing plan but rather it was simply “shop talk.”

Judge Gleeson rejected that claim as well as the notion that the air cargo price-fixing was regional and not a global effort. The judge further explained “it’s pretty clear that there are facts with respect to all four of the remaining defendants from which a rational juror could conclude participation in a worldwide conspiracy,” according to the air cargo MDL argument session.

Multiple other airlines have settled allegations of price-fixing by awarding more than $1 billion to put an end to civil antitrust claims. In 2014, two international airlines Asiana Airlines and Nippon Cargo Airlines reached settlements in the price-fixing MDL.

In October, Judge Gleeson certified that the air cargo price-fixing MDL would be open to all Class Members who purchased cargo-shipping services to or from the United States directly from any of the defendants or their related companies between Jan. 1, 2000, and Sept. 30, 2006.

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

The Air Cargo Price-Fixing MDL 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

UPDATE: On Oct. 6, 2016, a federal judge signed off on the last few settlements ending a decade-long air cargo antitrust litigation.