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Tank pumper cartel: Gleiss Lutz advises IVECO Magirus on collective settlement with local authorities

Aided by Gleiss Lutz, fire-fighting vehicle manufacturer IVECO Magirus has – following lengthy negotiations – reached an agreement to collectively settle cartel damage claims out-of-court with the associations of German local authorities. The claims of all local authorities possibly affected by the tank pumper cartel are to be settled through a central fund. This is the first collective settlement of its kind to be negotiated in Germany.

In 2011 the Federal Cartel Office fined companies Rosenbauer, Schlingmann and Ziegler, and later IVECO Magirus, for anticompetitive practices in connection with sale of fire-fighting vehicles over 7.5t (standard vehicles). The fine notice for IVECO Magirus is not yet final and binding.

Since 2011 manufacturers and the associations of local authorities have been negotiating an out-of-court settlement of any potential cartel-related damages suffered by the more than 11,500 local authorities in Germany. Based on an economic expert report commissioned by both sides, the parties agreed to set up a settlement fund equipped with a maximum of 6.738 million euros, to be used to compensate affected local authorities. On 13 May 2013, IVECO Magirus, Rosenbauer and Schlingmann concluded a framework settlement with the associations of local authorities, which the individual local authorities may join. Gleiss Lutz played a major role in the negotiations.

This collective settlement is likely to serve as a model for other cartel cases in which thousands of buyers also assert claims for damages.

Gleiss Lutz also helped IVECO Magirus successfully defend actions for damages filed by some local authorities with various regional courts.

IVECO Magirus was advised by the following team of Gleiss Lutz lawyers: Dr. Christian Steinle (partner), Dr. Ines Bodenstein and Dr. Matthias Hörster (all competition and antitrust, Stuttgart).

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