Paccar will pay a $600 million pre-tax charge following recent court judgments in Europe this year that were linked to a landmark case in 2016 against truck manufacturers over pricing.
The company said in a securities filing Tuesday that it will record a expense of $446 million after tax in Q1 due to adverse judgments. Customers have sought damages following a 2016 European Commission ruling that found several truck manufacturers colluded from 1997 to 2011 to raise prices amid changing emissions standards.
The Bellevue, Washington-based OEM said in a securities filing Tuesday that lawsuits have led to settlements in 2023. Customers argued that they paid higher prices than they should have.
“In 2023, several European courts issued judgments; some have been favorable while others have been unfavorable and are being appealed,” Paccar said in its filing, noting the estimated expense could change as the legal process continues.
In February 2023, a U.K. appeal tribunal ruled against Paccar and subsidiaries including DAF Trucks for overcharge claims, finding it owed at least €35.1 million (or about $37 million) to Royal Mail Group and €3.4 million (approximately $3.6 million at the time) to BT Group and related British Telecommunications businesses.
The recent rulings are on top of the $833 million fine that Paccar paid back in 2016 to settle the initial case. A Paccar spokesperson didn’t immediately respond to a message seeking comment, though the securities filing noted that the company believes “it has meritorious defenses to the legal claims.”
The 2016 settlement involved billions of dollars in fines against Daimler, Paccar and other truck manufacturers, and lawsuits associated with the initial case have weighed on the finances of other OEMs.
Daimler Trucks said in its 2022 annual report that claims are pending across approximately 20 European countries. That comes after its former parent company, Daimler, paid a €1.09 billion fine (over $1.2 billion) in 2016.