The representative plaintiff in a proposed class action alleging a price-fixing conspiracy in the Canadian aftermarket oil and air filter market sought court approval of a settlement resolving the litigation.
The settlement provided for payment of $350,000, subject to an opt-out threshold, with a distribution protocol requiring significant purchase thresholds for direct recovery and a cy-près allocation to a consumer organization for remaining funds.
The court considered the risks of continuing litigation, including evidentiary issues, uncertainty regarding proof of conspiracy and price impact, and the pending Supreme Court of Canada decision concerning indirect purchaser rights.
Concluding that the settlement represented a fair, reasonable, and pragmatic resolution given the litigation risks, the court approved both the settlement and the reduced contingency fee arrangement.
