Third-party funder Calunius has made a “series of strategic investments” in the CDC Cartel Damage Claims group of companies, which is currently pursuing litigation across Europe worth €500m (£402m).
CDC is a pioneer in recovering damages caused by unlawful cartels which have been found guilty by the European Commission or national competition authorities of manipulating prices and markets in breach of competition law.
CDC is currently pursuing five antitrust damage actions before courts in Germany, the Netherlands and Finland with total damages exceeding €500m. They concern the European hydrogen peroxide cartel, the European sodium chlorate cartel, the European paraffin wax cartel and the German cement cartel.
The investments will secure long-term funding for these cases and for the expansion of CDC’s activities.
CDC founder Ulrich Classen said: “European businesses still forego justified compensation claims in the billions of Euros annually. The strategic collaboration between CDC and the Calunius Fund is fully in line with and supports the established public policy objective of private enforcement of antitrust claims.
“The cooperation with the Calunius Fund confirms that investors increasingly perceive antitrust damage claims as valuable assets. Besides the damage in form of price overcharges and loss of profit, interest at a commercial rate can be claimed from the start of the infringement and plays a key role in giving full reparation to victims.
Christian Stuerwald of Calunius Capital said: “The European Commission has actively encouraged the victims of cartels in Europe to seek compensation for their losses by taking action in their local courts. However, the commission seems to have misunderstood the availability of private law remedies and cartelists are still able to hide behind procedural obstacles which prevent individual victims from getting timely relief.
“CDC’s highly sophisticated case management skills and its organised and thorough approach to litigation appears to us to be addressing the need for private redress for cartel fraud, solving the problem of getting stated public policy objectives to work on the ground and represents to our investors a very interesting investment opportunity.”