Antitrust violations are serious an a significant event that has made headlines in the automotive industry is the Automobile Antitrust Ford Canada Settlement. This settlement is the culmination of a legal battle that spanned nearly two decades.

Understanding the Automobile Antitrust Ford Canada Settlement

The Automobile Antitrust Ford Canada Settlement refers to a legal case that was filed against Ford Motor Company of Canada, Limited. The case alleges that Ford Canada conspired with other car manufacturers and a trade association to restrict the export of cheaper vehicles from Canada to the United States, thereby maintaining high prices for vehicles sold or leased in California.

The Settlement Amount

Ford Canada agreed to a settlement amount of $82 million, putting an end to the legal proceedings. This brings closure to a case that had been litigated for almost nineteen years, with Ford Canada being the last defendant in the case.

The Parties Involved

The case was filed against Ford Canada, with the plaintiffs comprising individuals and businesses who purchased or leased new passenger cars, light-duty trucks, or sport-utility vehicles between January 1, 2001, and April 30, 2003. These vehicles had to be bought or leased from authorized dealers in California, and the plaintiffs had to be residents of California as of November 15, 2010.

The Background of the Case

The case, known as Automobile Antitrust Cases I and II, was initiated in the spring of 2003. The plaintiffs alleged that Ford Canada, along with several other large automakers, had conspired to prevent the export of new vehicles sold in Canada to the United States.

The Impact of the Alleged Conspiracy

The plaintiffs in the case argued that the alleged conspiracy resulted in higher prices for new cars in California. They claimed that by preventing the export of cheaper vehicles from Canada, the automakers were able to maintain higher prices in the US market.

The Progress of the Litigation

The litigation process was lengthy and included extensive discovery of evidence, multiple rounds of summary judgment motions, several appeals, and over 100 depositions. The settlement was agreed upon just three weeks prior to the start of the trial.

Previous Settlements in the Case

There were three previous settlements in this case and related cases. Toyota Motor Sales, U.S.A., Inc., and the Canadian Automobile Dealers’ Association entered settlement agreements and agreed to pay a combined $35.7 million to settle the claims against them. General Motors of Canada, Ltd., also entered a settlement agreement, agreeing to pay $20.15 million to settle the claims against it. These settlements were approved by the appropriate courts and the settlement money was distributed to authorized claimants.

The Structure of the Automobile Antitrust Ford Canada Settlement

The settlement structure followed the ‘claims made’ format, meaning claimants had to submit a claim to be eligible for a share of the settlement fund. The claim submission deadline has now passed.

The Claim Eligibility Requirements

To be eligible for a claim, claimants had to meet certain requirements. These included buying or leasing a new passenger car, light-duty truck, or SUV between January 1, 2001, and April 30, 2003, from an authorized dealer in California. The vehicle had to be of a specific make, and claimants had to have lived in California on November 15, 2010.

The Settlement Distribution

The net settlement fund will be distributed on a weighted, pro-rata basis, based on the vehicle purchases and leases of the claimants. Economists have conducted an analysis to estimate the overcharge, i.e., how much higher new vehicle prices were raised in the US as a result of the alleged conspiracy.

The Final Approval of the Settlement

The final approval hearing for the settlement took place on October 5, 2022. Following this, the Court granted final approval of the settlement with Ford Canada, entered the judgment, and awarded fees and costs to Class Counsel and service awards to two named plaintiffs.

Resolution of the Case

The approval of the settlement marked the end of the litigation process. Ford Canada was dismissed from the case, and the lawsuit was concluded.

The Future of the Settlement

At present, there is no set date for the distribution of the settlement amount. Once a date has been set, it will be posted on the California Cars Settlement Website.

The Automobile Antitrust Ford Canada Settlement is a significant event in the automotive industry, highlighting the potential legal repercussions of anti-competitive practices. The case serves as a reminder for businesses to ensure their practices adhere to antitrust laws and regulations.

Frequently Asked Questions About the Automobile Antitrust Ford Canada Settlement

What is the Automobile Antitrust Ford Canada Settlement?

The Automobile Antitrust Ford Canada Settlement is a legal case that was filed against Ford Motor Company of Canada, Limited. The case alleged that Ford Canada, along with other car manufacturers and a trade association, conspired to restrict the export of cheaper vehicles from Canada to the United States.

What was the outcome of the Automobile Antitrust Ford Canada Settlement?

Ford Canada agreed to a settlement amount of $82 million, bringing an end to the lawsuit that had spanned nearly two decades.

Who were the parties involved in the Automobile Antitrust Ford Canada Settlement?

The case was filed against Ford Canada. The plaintiffs comprised individuals and businesses who bought or leased new vehicles between January 1, 2001, and April 30, 2003, from authorized dealers in California.

What is CalCars?

CalCars, or the California Cars Initiative, is a non-profit organization that promotes plug-in hybrid electric vehicles (PHEVs) as a key solution to climate change and oil dependency. It is not directly related to the Automobile Antitrust Ford Canada Settlement.

When is the distribution of the settlement amount expected to take place?

At present, there is no set date for the distribution of the settlement amount. Once a date has been set, it will be posted on the California Cars Settlement Website.