A number of large companies have decided not take part in class action settlement being pursued against shipping companies operating between the U.S. mainland and Puerto Rico.
Those opting out include retailers Wal-Mart, Sears and Walgreens, manufacturers Kraft and Ingersoll-Rand, and transportation companies YRC and Wallenius Wilhelmsen.
Epiq, a company assisting attorneys pursuing the class action on behalf of shippers who moved cargo between the U.S. mainland and Puerto Rico from 2002 to 2008, told a U.S. District Court in San Juan in papers filed Dec. 1 that it has received 1,470 forms from shippers making claims from a proposed $52 million settlement fund.
Epiq added that as of Nov. 19, it "received 11 requests for exclusion covering 25 entities." The 25 entities included the names of 230 companies, many of which were related, and addition to those mentioned above included firms such as Pepsi-Cola, Coca-Cola, Nestle, Conagra and Procter and Gamble.
Shippers had to decide by Nov. 15 whether they wanted to participate in the class action, and companies that asked to be excluded, may pursue individual lawsuits or settlements with carriers.
The plaintiffs in the class action alleged Puerto Rico carriers and selected executives at those companies "violated federal antitrust laws by entering into a combination, conspiracy or agreement to fix, maintain, raise or stabilize the prices" in 2002-2008. The shippers claimed they were injured by paying more for transportation between the mainland and Puerto Rico than they would have paid in the absence of the alleged unlawful conduct.
Settling defendants Horizon Lines, Crowley Maritime and Sea Star Line denied the overcharge allegations, but according to the notice "agreed to the settlements to avoid the cost and risk of a trial, and so that those allegedly affected can get benefits." In April, a fourth carrier, Trailer Bridge, was dismissed from the lawsuit, but its customers could also seek compensation under the settlement agreement