Panalpina enters into preliminary agreement to settle U.S. antitrust class action
Oct 23, 2013
Panalpina entered into a preliminary agreement to settle a U.S. class action lawsuit alleging anticompetitive industry practices regarding certain freight surcharges. Panalpina agreed to pay an amount of USD 35 million, which includes previously received proceeds of USD 5.8 million, in an unrelated class action against various airlines. The settlement is subject to U.S. court approval and will impact the fourth quarter 2013 results.
The civil class action lawsuit was filed in the U.S. in 2008 against a large number of air freight forwarders, including Panalpina, as a direct consequence of investigations by the U.S. Department of Justice (DOJ) for violations of the Sherman Antitrust Act regarding certain surcharges imposed on international air freight forwarding services. This case was settled with the U.S. DOJ in 2010 by entering into a plea agreement (see media release from October 1, 2010). Panalpina agreed to enter into the current settlement agreement to avoid cost and risk of trial.