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Millions of UK motorists who claim they overpaid for their cars due to a price-fixing scheme involving several vehicle shipping companies have reached a £37.8 million ($47.8 million) settlement. This settlement, which precedes a trial set for January, is part of an opt-out class action lawsuit filed against two major shipping carriers. Lawyers representing the affected group announced the settlement on Tuesday.

Scott + Scott UK LLP, the law firm leading the case, confirmed the settlement agreements with two key defendants: Wallenius Wilhelmsen, a Norwegian carrier, and its subsidiary Eukor, which agreed to pay £24.5 million. The Japanese shipping company, "K" Line, settled for £13.25 million. This brings the total settlements in the case to nearly £40 million, following previous settlements with other defendants, including a £1.5 million settlement with a Chilean carrier in 2023.

The settlements represent the largest amount ever secured in a class action case in the Competition Appeal Tribunal (CAT), though the agreements are still subject to approval in a CAT hearing scheduled for Thursday.

Background on the Case and Alleged Cartel Activities

The class action was initiated after a 2018 European Commission decision, which fined the implicated companies €395 million ($415 million) for violating competition law. The European Commission found that five vehicle shipping companies had engaged in coordinated price-fixing, reduced market capacity, and exchanged sensitive information to manipulate the prices of intercontinental vehicle shipping between 2006 and 2015.

The collective opt-out claim, led by consumer advocate Mark McLaren, represents UK consumers who bought approximately 17 million vehicles during that period. The claimants allege that these individuals and businesses were overcharged for their cars because of the cartel’s illegal activities, which affected the cost of shipping new vehicles into the UK.

Positive Developments and Impact of the Settlement

Belinda Hollway, a partner at Scott + Scott UK LLP, expressed optimism about the in-principle settlement, calling it a "very positive development" for the class members. Hollway also emphasized that the settlement demonstrates the momentum of the claim, which will continue as it moves forward toward the trial against the remaining defendants in January.

“This settlement represents a major milestone in the case, and if approved, it will provide significant compensation to the affected class members,” said McLaren. “I look forward to the upcoming hearing, where we will show the Tribunal why these settlements are in the best interest of those we represent.”

Upcoming Trial and Future Legal Action

While the settlements bring significant financial relief to many claimants, the legal battle is far from over. The trial against the remaining defendants—Japanese carriers Mitsui OSK (MOL) and NYK Line—is scheduled to begin in January. This portion of the case is valued at an additional £100 million, which could further increase the overall amount of compensation secured for UK motorists.

The legal teams representing the involved companies, including Wallenius Wilhelmsen, Eukor, and "K" Line, did not immediately respond to requests for comment on the settlements. The claimants are being represented by Sarah Ford KC, Emma Mockford, and Sarah O'Keeffe from Brick Court Chambers, with legal services provided by Scott + Scott UK LLP.

The settlement of nearly £38 million marks a significant step forward for UK motorists affected by the alleged price-fixing cartel. As the trial against the remaining defendants looms, this case serves as a powerful reminder of the importance of competition law enforcement in protecting consumers from anti-competitive practices. If the upcoming trial results in further settlements or judgments in favor of the claimants, it could set a precedent for future class action claims related to price-fixing and anti-competitive behavior.