Major litigation finance firm, Nera Capital, is expanding its portfolio with the purchase of 50,000 car cartel claims from the administrator of a Spanish car hire company, as part of an action against some of the world’s largest car manufacturers.
Nera Capital is working to help thousands of additional claimants receive compensation following a seven-year cartel operation in Spain, which involved 28 car manufacturers and dealers.
With this latest announcement, Nera Capital aims to settle claims with a total commerce value exceeding €1 billion.
It’s consumer claims model, running parallel to the purchased claims, reduces litigation risk for claimants, allowing them to avoid involvement in the litigation process and eliminating the need for upfront legal costs.
Amy Fowler, Nera Capital’s Chief Underwriting Officer, expressed hope that this portfolio expansion will help motorists obtain the compensation and justice they deserve after the harmful impact of the cartel.
“The ongoing effects and damage this seven-year monopoly caused should not be underestimated,” Ms. Fowler emphasized.
“With 9.7 million cars sold during the cartel period, it is imperative that justice is served and the motorists who worked hard to purchase their vehicles are remunerated.”
These claims follow a July 2015 decision by The National Commission of Markets and Competition (CNMC) to impose a €117 million fine on the car manufacturers for anti-competitive practices.
The Commission found that the cartelists, operating in Spain between February 2006 and July 2013, engaged in strategic exchanges of sensitive material to mutually benefit and control the market in the automotive sector.
These illegal and restrictive practices led to a monopoly, resulting in motorists paying an additional 10 to 15%.
Ms. Fowler noted that Spain has become a prominent jurisdiction for damage claims over the past five years, adding that it is also a desirable market for Nera Capital due to the speed of proceedings and relatively low litigation costs.
As one of Europe’s leading litigation funders, Nera Capital takes pride in funding numerous anti-trust claims where companies have colluded to control prices or create monopolies.
Aisling Byrne, Director of Nera Capital, further explained: “There have been thousands of claimants and proceedings concerning cartel cases and abuse of dominant positions.
“Fighting a legal battle can be a daunting and draining process, but I don’t think that should stand in the way of justice being served.
“That’s why, at Nera Capital, we work hard to offer a way for claimants to receive a fair opportunity to fight for what they are entitled to, tailored to their economic appetite for the litigation process.”
