Autoliv reaches settlements in US Antitrust Class Actions

June 02, 2014 - Sweden

Autoliv, Inc. has entered into separate settlement agreements with three classes of purchasers in antitrust class actions in the United States. 
 
As previously disclosed, Autoliv and certain of its subsidiaries are defendants in multiple putative antitrust class actions pending in the United States District Court for the Eastern District of Michigan (the “MDL”). These class actions are brought on behalf of three separate alleged classes of purchasers of occupant safety systems in the United States, namely: direct purchasers, auto dealers and “end-payors” (consumers).
 
In entering the settlement agreements, Autoliv does not admit any liability and is settling for the purpose of avoiding the uncertainty, risk, expense and distraction of further class action litigation in the MDL. Pursuant to the settlement agreements, Autoliv has agreed to pay $40 million to the direct purchaser settlement class, $6 million to the auto dealer settlement class, and $19 million to the end-payor settlement class, for a total of $65 million.
 
The direct purchaser settlement amount is subject to potential downward adjustments to a floor of $24 million based on the volume of Autoliv’s sales represented by direct purchasers who elect to opt out from the settlement class. Each settlement agreement gives Autoliv the option to void that settlement if the opt-outs from the settlement class exceed varying thresholds.
 
Each settlement agreement also provides that the settlement class members will release Autoliv, its subsidiaries, and its and their respective current and former officers, directors and employees, from the claims and demands that were or could have been asserted. Each settlement is subject to certain conditions including court approval following notice to the settlement class members. If approved, the settlements will resolve the claims asserted against Autoliv and its subsidiaries on behalf of the three settlement classes. Autoliv expects to record an expense of approximately $65 million in its second quarter 2014 results.