The action for damages
BE CAUSE and CDC support the companies harmed by the corrugated cardboard cartels by taking one major legal action to obtain compensation for damages unjustly suffered.
The proposal is designed to:
- fully fund the compensation action
- aggregate claims from a multitude of injured parties into a single legal action
- achieve the best possible compensation in the shortest possible time
- create synergies for the quantification of damages and legal proceedings
- ensure full compliance with the rules on legal actions funded by third parties
Corrugated cardboard cartels
In Italy, for about 14 years from February 2004 until March 2017, as many as 34 producers of corrugated cardboard sheets and corrugated cardboard packaging colluded to charge inflated prices, imposing higher prices on purchasing companies than they would have been able to obtain under free competition.
The unlawful cartels were identified and sanctioned by the AGCM – Autorità Garante della Concorrenza e del Mercato (Italian Competition Authority), which, on 17 July 2019, proved the existence of two price-fixing agreements (so-called “cartels”), concerning the sale and marketing of corrugated cardboard sheets and corrugated cardboard packaging, respectively.
First the Regional Administrative Court (TAR) and recently the Council of State fully confirmed the existence of the cartels, paving the way for compensation actions (so-called “antitrust private enforcement actions”) by thousands of victim companies that purchased corrugated cardboard sheets and packaging in the period 2004-2017.
THE DAMAGED SECTORS
The damaged sectors
The sectors that buy corrugated cardboard and have suffered the most from the cartels are:
- food, fresh and processed food, fruit and vegetables, food liquids and beverages, meat and fish
- logistics, paper and packaging, and printed products
- construction, ceramics and porcelains
- household appliances and products
- pharmaceuticals and cosmetics
- industrial chemicals
The right to compensation
Anyone who purchased corrugated cardboard between 2004 and 2017 is entitled to claim damages for the higher price paid as a result of the unlawful cartels of corrugated cardboard sheets and packaging.
The AGCM’s decision, confirmed by the administrative justice bodies, is binding for the Italian competent court “Tribunale delle Imprese” and renders the existence of the cartels, the nature of the infringement and the presumption of harm to purchasers indisputable.
On the basis of preliminary analyses, the anti-competitive cartels led to an unfair and significant overcharge, to which must be added interest accruing from the date of the individual purchases until the payment of damages.
The total compensation is then to be determined as the sum of the net overcharge plus interest.
HOW TO OBTAIN COMPENSATION
The risks of traditional actions against cartels
Alternatives to the BE CAUSE and CDC proposal on the market are individual actions with costs and risks borne by the company or collective actions brought by a plurality of parties, with costs and risks funded by a third party.
Both of these paths have disadvantages:
- individual actions are not convenient, because costs of litigation are high, due to the complex preparatory work and economic analysis, against uncertain outcomes;
- collective actions with a large number of actors take longer and multiply risks because exceptions that affect other participants in the action need to be answered.
In both cases, the companies, acting in their own name, could jeopardize relations with the suppliers of corrugated cardboard sheets and packaging with whom they do business.
HOW TO OBTAIN COMPENSATION
The solution: a single large compensation action
BE CAUSE and CDC propose that those harmed by cartels exercise their right to compensation through a single legal action, brought by BE CAUSE in its own name in the interest of all harmed parties.
This is an original solution which presents has all the advantages of a collective action with funding of litigation costs and at the same time reduces the duration and procedural risks.
The costs of litigation are borne exclusively by BE CAUSE, who, if the action is unsuccessful, bear them in full.
In the event of success, the damages will be apportioned among the claim holders in proportion to the rights of each and thus in proportion to the respective damages suffered, less only what is attributable to BE CAUSE and CDC.
Companies will be entitled to 70% of the amount recovered, a percentage that may be progressively reduced to a maximum of a further 10% in the event of prolonged court proceedings.
The legal and operational structure designed
presents unique advantages
- allowing the ‘depersonalization’ of the litigation, as the action is brought by BE CAUSE without the formal involvement of the injured parties, who thus preserve their business relationships with suppliers;
- eliminating regulatory risks with regard to the financing of the action, since:
- BE CAUSE is the first and only litigation fund to be authorized by the market authorities to carry out Litigation Finance activities in Italy; and consequently
- companies can rely on the full validity of agreement, avoiding the risk of litigation being slowed down and prejudiced due to procedural exceptions on these grounds;
- maximizing the chances of return for the damaged companies, as the size of the action and the quality of the data collection carried out with uniform methodology by CDC enabled:
- a robust and convincing quantification of damages before the court, which in case of individual actions is more difficult to achieve due to lack of resources, or in case of collective actions with a plurality of plaintiffs, where the preparatory work is likely to be complex and jagged;
- the achievement of economies of scale and the perfect alignment of interests;
- access to the most experienced and specialized antitrust law firms and economic consultants, in addition to the broad expertise and long-time experience of CDC, the recognized European leader in antitrust damages actions;
- to benefit from greater negoziating strenght at every stage of the litigation, thanks also to the availability of funds and the reputation of BE CAUSE and CDC;
- to reduce to zero of the risk that the action might be weakened by the withdrawal of some participants, who could be induced to do so by the cartelists;
- reducing the uncertainties in terms of timing and complexity of antitrust litigation thanks to the structure that allows all claims to be aggregated in a single action brought by a single party, overcoming the procedural complexities of litigations with a multitude of claimants.
BE CAUSE SICAF S.p.A. 
It is the first and only Alternative Investment Fund (AIF) to operate in Italy in the Litigation Finance sector by virtue of the authorization issued by the Bank of Italy and Consob.
BE CAUSE is structured in the form of a specialized boutique, with high expertise in the legal, negotiation and economic-financial fields, and an extensive partnership network.
It is an independent entity, capable of responding to the needs of the market and the way justice works in Italy with flexible and customized solutions.
The management team, fully dedicated and co-invested in the project, developed a unique expertise in the field of Litigation Finance.
BE CAUSE invests in antitrust, bankruptcy, commercial and tax litigation before courts and arbitration panels in Italy and abroad.
BE CAUSE complies with the highest regulatory standards given its nature as an AIF subject to the supervision of market authorities.
CDC Cartel Damage Claims 
CDC is a leader in the business of recovering damages due to anti-competitive cartels. Founded in 2002, CDC is the first mover in the market in Europe.
The multidisciplinary and international team includes competition economists, specialized lawyers, statisticians and IT experts.
CDC has been applying structures and technical solutions to optimize antitrust damage analysis and litigation and negotiation management strategies for 20 years.
CDC is the only operator in Europe with an exceptional track record, namely multi-million-euro settlements achieved in 100% of the cases pursued so far. CDC has successfully brought damages actions in Germany, the Netherlands and Finland.
CDC has successfully realised claims for damages from companies in more than 15 EU Member States, including Italy.
BE CAUSE and CDC’s proposal
offers the strongest, safest and most comprehensive claim for damages caused by corrugated cardboard cartels
- Maximizes compensation and shortens settlement times
- Ensures a perfect alignment of interests with the participants in the action
- It is promoted by industry leaders and is the safest option on the market
Contacts
If you purchased corrugated cardboard between 2004 and 2017, please write to us to claim damages:
