HomeEUROPEBRITISH MOTORISTS SECURE 38 MILLION POUNDS IN LANDMARK CAR SHIPPING CARTEL SETTLEMENT

BRITISH MOTORISTS SECURE 38 MILLION POUNDS IN LANDMARK CAR SHIPPING CARTEL SETTLEMENT

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British motorists have secured a groundbreaking settlement after a protracted legal battle against shipping companies accused of overcharging for vehicle deliveries to the UK. The case, brought by Mark McLaren, represented by the US-based law firm Scott+Scott, alleges that a cartel of logistics firms inflated shipping costs, affecting car buyers between October 2006 and September 2015.

The Competition Appeal Tribunal (CAT) today approved the 37.75 million settlements between McLaren, WWL/EUKOR, and K-Line, two of the four shipping companies named in the lawsuit. The settlements, valued at 24.5 million and 13.25 million pounds, respectively, represent a significant milestone for the affected motorists.  They follow a prior agreement reached last year with CSAV, another shipping company, for 1.5 million pounds. A trial for the unresolved claims against two other defendants, MOL and NYK, will begin next month.

Belinda Hollway, partner and head of Scott+Scott’s London office, described the settlements as a notable achievement for collective legal proceedings in the UK. “These agreements reflect the strength of the claim and provide momentum as we approach the trial against the remaining defendants,” Hollway said. She highlighted the case’s broader implications, noting its importance for the immediate claimants and the UK’s collective action regime.

The case originates from findings by the European Commission, which in 2019 imposed fines exceeding 300 million pounds on several shipping companies for colluding to manipulate market conditions. The Commission determined that these firms coordinated rate increases, reduced shipping capacities, and shared sensitive commercial information to maintain or raise vehicle shipping prices artificially. The inflated shipping costs were ultimately passed on to consumers, prompting collective action in the CAT.

Motorists affected by the anti-competitive conduct had purchased vehicles from leading manufacturers such as BMW, Ford, Nissan, Toyota, Vauxhall, and Volkswagen. Drawing on his experience in consumer advocacy, McLaren reiterated his commitment to holding companies accountable for unlawful practices. “I have dedicated much of my career to consumer protection and strongly believe in compensating those harmed by illegal conduct,” he said.

The legal action has received financial backing from Woodsford, the London-based litigation funder.

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