Background:

The case Charlton v. Musashi Bockenau GmbH & Co. KG originated from allegations that the defendants, Musashi Bockenau GmbH & Co. KG, Hirschvogel Umformtechnik GmbH, Bharat Forge CDP GmbH, and Bharat Forge Global Holding GmbH, engaged in anti-competitive conduct. The defendants, all German corporations, operated in the global market for forged steel products used primarily in motor vehicles. The lawsuit claimed they violated the Competition Act, R.S.C. 1985, c. C-34, by engaging in price-fixing and other anti-competitive practices.

The plaintiff, Kevin Charlton, filed the class action in February 2021, and the defendants were served with the notice of civil claim in July 2021. In response, the defendants filed jurisdictional challenges and responses to the claim in 2022. Negotiations between class counsel and the Settling Defendant, Musashi Bockenau GmbH & Co. KG, led to a settlement agreement on October 4, 2023.

Legal Issues:

The key legal issue revolved around whether the defendants’ actions constituted a breach of Canadian competition law through anti-competitive practices in the forged steel industry.

Settlement and Costs:

A settlement of $595,000 CAD was reached with Musashi Bockenau GmbH & Co. KG. The funds were placed in trust for future distribution, pending ongoing litigation against the other defendants. No objections or opt-outs were received from class members.

Ruling:

The court approved the settlement, finding it fair and reasonable, and advantageous for the class members.