Monday, September 17, 2012

Freight Forwarding Group Pays Shippers $28 Million Following Anti Trust Activities

Kuehne + Nagel Will Look to Air Cargo Carriers for Some Recompense
Shipping News Feature

US – SWITZERLAND – With the revelation at the end of last week that they are to stump up $28 million dollars to their accusers in a US based class action lawsuit which sought civil damages for conduct previously investigated by the US Department of Justice, freight forwarding group Kuehne + Nagel says it has reached a conclusion to the unholy affair which saw anti trust charges brought against K + N and a host of others.

We reported almost exactly two years ago how the Swiss based operator entered a plea bargain agreement with the Department of Justice in return for which it received a near $10 million penalty for colluding with rival agencies and airlines to fix the cost of surcharges. Now the company has once again agreed to settle with shippers for uncompetitive practices it indulged in saying the costs will be taken from the provisions built in to previous financial reports and confirms in addition, it will assign proceeds that it receives from a pending class action against airlines. Karl Gernandt, Chairman of Kuehne + Nagel International AG said:

“With this settlement we will be able to finally conclude the painful litigation in the United States related to past antitrust allegations – already in November 2011 the respective United States District Court approved the plea agreement between Kuehne + Nagel and the US Department of Justice.”

Photo: One suspects messrs. August Kuehne and Friedrich Nagel, co-founders of K+N would not approve of the latest chapter in freight forwarding history.