Cathay Pacific 2015 Annual Report Download - page 88

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Cathay Pacific Airways Limited
86
28. Capital commitments and contingencies (continued)
The Company was a defendant in various putative class action cases filed in the United States, in which the plaintiffs
alleged the Company and other carriers that provide air cargo services fixed the prices of various air cargo charges
and surcharges in violation of United States federal antitrust laws. Those were consolidated into one case for all
pre-trialpurposes,InreAirCargoShippingServicesAntitrustLitigation,MDLNo.1775,EDNY.Damageswere
demanded, but the amounts were not specified. The Company reached an agreement to settle this matter in
February 2014, by paying the plaintiffs US$65 million (approximately HK$504 million at the exchange rate current at
date of payment). The settlement, which was approved by the Court in October 2015, resolved claims brought by all
putative class members who chose not to opt out of the agreement. Certain plaintiffs opted out of the agreement.
The claims of opt-out plaintiff DPWN Holdings (USA) were resolved by the payment of US$15.4 million
(approximately HK$119.4 million at the exchange rate current at date of payment) in December 2014. The claims of
opt-out plaintiff Schenker, AG were resolved by the payment of US$8.2 million (approximately HK$63.6 million at the
exchange rate current at date of payment) in January 2015. The Company is not aware of any other opt-out plaintiff
having asserted a claim, but none of the other opt-outs’ claims would be material.
The Company was a defendant in various putative class action cases filed in the United States, in which the plaintiffs
alleged the Company and other carriers fixed certain elements of the price charged for passenger air transportation
services in violation of United States antitrust laws. Those cases were consolidated into one case for all pre-trial
purposes, In re Transpacific Passenger Air Transportation Antitrust Litigation, MDL No. 1913, N.D. Cal. Damages
were demanded, but the amounts were not specified. The Company reached an agreement to settle this matter in
July 2014 by paying the plaintiffs US$7.5 million (approximately HK$58.1 million at the exchange rate current at date
of payment). The settlement, which was approved by the Court in May 2015, resolves claims by all putative class
members who chose not to opt out of the agreement. Only one passenger opted out. The Company is not aware of
any claim being filed by that passenger, but any claim on behalf of that passenger would not be material.
The Company is a defendant in three putative class action cases filed in Canada, in which the plaintiffs allege the
Company and other carriers that provide air cargo services fixed the prices of various air cargo charges and
surcharges in violation of the Canadian Competition Act. Two of the actions were stayed pending resolution of the
third class action, which was certified in August 2015. Damages were demanded, but the amounts were not
specified. The Company reached an agreement to settle all three actions in December 2015, by paying the plaintiffs
CAD$6 million (approximately HK$34.9 million at the exchange rate current at date of payment). The settlement,
which is subject to Court approval, will resolve claims by all putative class members in all three actions.
Notes to the Financial Statements Supplementary Information