Polar Air Cargo (PO, New York JFK) along with Polar Air Cargo Worldwide, Inc. and Atlas Air Worldwide Holdings, Inc. have announced they have entered into a settlement agreement with the U.S. Department of Justice (DOJ) concerning their involvement in a previously disclosed antitrust class action lawsuit in the United States.
Under the settlement agreement, Polar Air has agreed to pay a total of USD100 million payable in three annual instalments the first of which is due on or before January 15, 2016, with the last due on or before January 15, 2018. The payments are expected to be funded from cash available on hand.
The settlement agreement, which is subject to approval and acceptance by the United States District Court for the Eastern District of New York, resolves all claims against the firms by participating members in the suit. The industry-wide litigation arose from allegations about the pricing practices of a number of air cargo carriers on routes to and from the United States from January 2000 through September 2006.
"The Companies continue to deny any wrongdoing or liability, and there is no admission of any wrongdoing or liability in the settlement agreement," the firms said in a joint statement.
The cartel has generated lawsuits across the world with plaintiffs claiming the conspiracy increased global shipping prices, costing businesses and individuals that ship goods by air billions of dollars in losses. To date, nineteen carriers have pled guilty to price-fixing in the United States, resulting in the Antitrust Division of the DOJ issuing fines of over USD1.7 billion.
