El Al has agreed to pay NIS 59.9 million, including legal fees, expense reimbursements and expert costs, to settle a class-action lawsuit over alleged involvement in an international air-cargo cartel. The settlement was filed with the Central-Lod District Court and still needs court approval. The case has been running for 13 years, based on allegations dating back to the 2000s, nearly 26 years ago.
The class action was filed in 2013 by the Success non-profit for promoting fair society, represented by attorneys Amit Manor and Yuki Shemesh. At the time, El Al was controlled by Knafaim Holdings, which was owned by the Borovich family. The petition claimed El Al and other companies took part in a global cartel that coordinated components of air-freight prices, including fuel and security surcharges.
El Al denied the claims throughout the proceedings and also in the settlement, insisting it was never part of a restrictive arrangement or cartel and that no wrongdoing occurred. The deal followed a lengthy mediation process and is expected to end the dispute if approved.
Under the agreement, NIS 50 million will go to qualifying class members, while the rest will cover compensation for the plaintiff, her lawyers, expenses and expert payments, bringing the total close to NIS 60 million. Eligible claimants are customers who directly or indirectly bought cargo-shipping services from El Al, in Israel or abroad, and sent goods to or from Israel, excluding shipments to or from the United States, between 2000 and February 2006, as well as customers who bought such services from direct buyers during that same period and for those destinations.
The money will be transferred to a fund for managing and distributing funds, or alternatively to a court-appointed administrator who will determine damage and eligibility. After the ruling approving the settlement, El Al will deposit the full amount into a trust account, and the administrator will pay eligible claimants from it. Any remaining balance will go to the public fund and, in any event, will not be returned to El Al. Those leftover funds are slated for public purposes connected to rebuilding communities around Gaza.
