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Australian Air Cargo Cartel Class Action Settles — Guidance on Risks and Costs

Nick Taylor et al., Jones Day, August 2016

See Nick Taylor's resume See Prudence Smith's resume See John Emmerig's resume See Michael Legg's resume See Talia Calgaro's resume

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• The air cargo cartel class action is the fourth of five cartel class actions that has commenced in Australia and the latest to be resolved through a
court-approved settlement. The settlement highlights the risk of cartel conduct attracting both regulator and class action lawyers’ interest. There
is scope for further cartel class actions in Australia as a result of increasing investment in private enforcement of competition laws.
• The Federal Court of Australia’s reasons provide guidance on the applicable principles to class action settlement approval. In particular, the in-depth
scrutiny of the settlement terms demonstrates the court’s concern in protecting the interests of group members that are not before the court but are
bound by the settlement.
• This particularly complex and lengthy case illustrates the complexities surrounding class actions, ncluding causation and damages and the signifi-
cant time and resources that these proceedings
utilise.
• The Federal Court of Australia also considers the applicable principles in relation to determination of a lump sum costs order under r 40.02(b) of the Federal Court Rules 2011 (Cth) (the Rules) in avour of a respondent that does not enter into the
settlement

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