Millions of UK motorists and businesses are set to receive compensation following the settlement of a class action lawsuit concerning inflated shipping fees for new vehicles. The Competition Appeal Tribunal (CAT) approved a settlement of £55.87m on Thursday.
The claim, led by Mark McLaren, alleged that leading European shipping companies breached competition law between October 2006 and September 2012. These companies reportedly formed a cartel, exchanging sensitive information, coordinating pricing, and dividing customers to avoid competition.
The alleged cartel impacted the shipment of 17 million new cars and vans destined for the UK from manufacturers including Ford, Vauxhall, Volkswagen, BMW, Mercedes-Benz, and Nissan. The original lawsuit, launched six years ago, was valued at £150m.
Individual payouts will begin at £25 per vehicle. Those claiming for more than one affected vehicle will receive an additional £5 for each up to six vehicles, and then an extra £2.50 for claims exceeding six vehicles. Compensation is expected to be paid in the coming months.