In a landmark decision, London’s Competition Appeal Tribunal (CAT) has approved the first ever settlement in a U.K. opt-out class action.
The tribunal ruled in favour of the class representative, Mark McLaren, who had brought a legal action on behalf of U.K. consumers and businesses who purchased or leased new cars and vans.
The settlement is for £1.5 million, and applies only to CSAV, one of the five defendant shipping groups which McLaren has taken action against.
McLaren was represented by the law firm Scott+Scott, while Wilmer Cutler Pickering Hale and Dorr instructed CSAV.
McLaren commented: “We are delighted that we have been successful in securing a settlement that will provide redress to those British consumers and businesses who bought new cars and vans and have suffered a loss as a result of the cartel. This is a significant milestone in this claim, which is important for the class members and also for upholding the rule of law and demonstrating that this regime works.”
CSAV is the smallest of the five defendants, with around 1.7% market share of the group.
The claim against the other four defendant groups is expected to proceed, with a trial due to be listed in early 2025.
According to a spokesperson, the settlement sum will be held in escrow and class members will receive damages once the litigation is resolved against the other defendants.
In May this year, the U.K. Supreme Court refused to grant the defendants permission to appeal the decision of the CAT, and subsequently the Court of Appeal, to authorise the class action.
In November, the CAT provisionally gave the go ahead to a £853 million opt-out class action being brought against Apple on behalf of U.K. iPhone users.
CSAV and Wilmer Hale did not respond to requests for comment.
