Asphalt cartel issue 

On 20 October 2016, the Court of Appeal of Helsinki gave its decisions in the legal proceedings concerning the damages related to the asphalt cartel. Regarding the 37 claims against Lemminkäinen, Lemminkäinen and other asphalt industry companies are entitled to receive reimbursements in total approximately EUR 20 million (consisting of capital amount of approximately EUR 14 million less as well as interest and legal expenses of approximately EUR 6 million less than according to the decisions of the District Court).

Of these reimbursements, Lemminkäinen is entitled to receive refunds (based on Lemminkäinen's own share and those shares of other defendants that Lemminkäinen has paid) in total approximately EUR 19 million consisting of capital as well as interest and legal expenses. Lemminkäinen recorded the reimbursement as income in its fourth-quarter result in 2016.

Lemminkäinen has as such deemed the claims for damages unfounded. Lemminkäinen has requested leave to appeal from the Supreme Court concerning Helsinki Court of Appeal's decisions regarding those municipalities' claims, where the claimants' claims were partly accepted and where Lemminkäinen did not reach a settlement with the claimants after the Helsinki Court of Appeal's decisions. Lemminkäinen has settled with 17 municipalities. The parties agreed not to request leave to appeal from the Supreme Court concerning the Helsinki Court of Appeal's decisions.

On 13 January 2017, Lemminkäinen and the State of Finland settled the dispute concerning damages related to the asphalt cartel and both parties will withdraw their requests for leave to appeal and appeals from the Supreme Court. Therefore the decision made by the Helsinki Court of Appeal on 20 October 2016 will be final between the parties.

Concerning Lemminkäinen, there are still 13 pending requests for leave to appeal submitted by Lemminkäinen as well as 19 requests for leave to appeal submitted by municipalities in the Supreme Court concerning the Helsinki Court of Appeal's decisions on 20 October 2016 regarding damages related to the asphalt cartel.

In addition, Lemminkäinen has been served summons regarding 21 claims against Lemminkäinen and other asphalt companies for damages. The capital amount of these claims is approximately EUR 26 million. For these claims, Lemminkäinen has made a provision worth EUR 5.1 million based on the Court of Appeal of Helsinki's decisions.

Releases related on the issue:


Summary of events

YearEventRelease

2017

On 13 January Lemminkäinen settled with the State of Finland

13 Jan 2017

2016

On 20 October 2016, the Court of Appeal of Helsinki gave its decisions in the legal proceedings concerning the damages related to the asphalt cartel.

On 19 December 2016Lemminkäinen requests leave to appeal for some of the Helsinki Court of Appeal's decisions regarding damages related to the asphalt cartel

20 Oct 201624 Oct 2016

19 Dec 2016

 2014

 

31 March 2014 Lemminkäinen appeals against district court's decisions concerning damages related to the asphalt cartel.

31 Mar 2014
 2013 The District Court´s decision on claims for damages.

28 Nov 2013
2 Dec 2013
20 Dec 2013

 2013 The District Court announces that it will announce its decisions on 28 November 2013. 8 October 2013
2012 Handling of claims for damages: Preparatory sessions for the trial begin in January 2012. The main proceedings will begin in September 2012 and are preliminarily planned to continue until April 2013. The ruling schedule is currently not yet available.  
2009 Supreme Administrative Court decision: asphalt industry companies are ordered to pay an infringement fine totalling EUR 82.6 million for violating the Act on Competition Restrictions. In accordance with the Finnish Competition Authority’s proposal, the infringement fine imposed on Lemminkäinen totals EUR 68 million. Lemminkäinen expenses EUR 54 million for Q3 of the year.

29 September 2009

29 September 2009

2007 Lemminkäinen appeals to the Supreme Administrative Court against a Market Court decision. 19 December 2007
2007 Market Court decision: Asphalt industry companies are ordered to pay EUR 19.4 million in infringement fines, of which Lemminkäinen’s share is 14 million. Lemminkäinen expenses EUR 14 million for Q4 of the year. 19 December 2007
2004 The Finnish Competition Authority proposes that an infringement fine be imposed on seven asphalt industry companies and the Finnish Asphalt Association for violations against competition legislation in the suspected asphalt cartel matter. The Finnish Competition Authority proposes an infringement fine of EUR 68 million on Lemminkäinen.  
2003 In June 2003, the Finnish Competition Authority submits a draft proposal to Lemminkäinen regarding a suspected asphalt industry cartel. In the draft proposal, the Finnish Competition Authority suspects that a nationwide cartel would have been operative in the asphalt industry in 1995-2002, with all significant industry actors participating.  

 

 

Updated 9 February 2017