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In a dramatic twist for U.K. consumers, a group representing motorists has secured a £38 million settlement in a high-profile lawsuit against international car shipping giants. The legal battle, spearheaded by law firm Scott + Scott UK LLP, centers on allegations that five major shipping companies formed an illegal cartel to fix prices, costing U.K. car buyers millions of pounds.

£24.5 Million Settlement with Norwegian Firm and £13.25 Million with Japanese Carrier

The settlement, which is poised to become a historic milestone, includes a £24.5 million deal with Norway's Wallenius Wilhelmsen and its subsidiary, Eukor, alongside an additional £13.25 million with the Japanese shipping giant "K" Line. This brings the total settlements in the class action to a remarkable £38 million. However, this deal is still pending approval by the Competition Appeal Tribunal (CAT), with a hearing scheduled for Thursday. The lawsuit, driven by consumer advocate Mark McLaren, represents U.K. buyers who purchased approximately 17 million vehicles between 2006 and 2015. The claimants allege that the illegal cartel between car shipping companies inflated the prices of their vehicles, causing significant financial harm to consumers.

A "Very Positive Development" for Claimants

Belinda Hollway, partner at Scott + Scott UK LLP, emphasized the importance of the settlements, calling them a "very positive development" for the class members. The deal, she said, reflects the growing momentum of the case ahead of the trial against remaining defendants, which is set to take place in January 2024. The legal action was initiated after the European Commission imposed a €395 million ($415 million) fine on the shipping companies in 2018 for breaching competition laws. The Commission found that the companies had conspired to coordinate shipping rates, reduce market capacity, and exchange sensitive information to manipulate the pricing of new vehicle shipments.

Significant Legal Progress and Future Trials

Tuesday's settlements follow a £1.5 million deal in 2023 with a Chilean carrier, also led by McLaren. This earlier settlement was approved by the appeals tribunal, bringing the total value of settlements to an impressive £38 million. McLaren hailed the new agreements as a "major milestone" and expressed confidence that they would provide substantial compensation for the affected class members. Looking ahead, the trial against the remaining two defendants, Mitsui OSK (MOL) and NYK Line, is scheduled for January. This trial is expected to be another pivotal moment in the case, with an estimated value of £100 million.