Norton Rose Fulbright secures milestone post-trial “drop hands” resolution of UK collective action for Qualcomm

Global law firm Norton Rose Fulbright's cross-border US and UK team has secured a successful precedent setting outcome for Qualcomm in the £480 million collective proceedings brought by consumers' association Which? before the UK Competition Appeal Tribunal (Tribunal).

The Tribunal has approved the first ever "drop hands" collective settlement, resulting in the settlement of all claims with no payment to the class.

The Tribunal's decision follows a five-week trial and reflects the settlement Tribunal's independent assessment that the claims against Qualcomm "no longer had a realistic prospect of success", noting that Which? had encountered "substantial evidential problems" in making out its case.

The Tribunal ultimately found that the settlement of all claims without any payment was reasonable and in the interests of the class members and other stakeholders. This is because, among other reasons, "the CR no longer had a realistic prospect of success", Qualcomm "was not prepared to pay any sum", and, "[a]lthough the Proposed Settlement does not provide damages to class members, it nonetheless imposes real costs on a number of those involved in the Proceedings", including the CR's legal representatives and the litigation funder.

This outcome reflects Qualcomm's position throughout the proceedings, having consistently and firmly denied the allegations since the claim was brought in 2021. It also represents an important development in the UK collective proceedings regime, confirming that claims which do not withstand scrutiny at trial can be brought to an efficient end, and provides guidance on how the CAT will assess "drop hands" settlements in future cases.

Partners Richard Zembek (Global Head of Technology, Houston), Caroline Thomas (Head of Antitrust and Competition, London) and Nuala Canavan led the Norton Rose Fulbright's global team, with partners Andrea D'Ambra (US Head of Technology and US Head of eDiscovery and Information Governance) and Ellen P. Blanchard, counsel Verity Quartermain, senior associates Gabrielle Martin and Georgia Cairns, and senior counsel Felice Galant leading major workstreams throughout the proceedings. The Qualcomm team was led by David Greenfield.

The firm's cross-border team collaborated closely with colleagues at Quinn Emanuel Urqhart & Sullivan LLP (Brussels) and Brick Court Chambers, and expert economic input was provided by Compass Lexecon.

Caroline Thomas said:

"This is an excellent outcome, which reflects the strength of Qualcomm's case at trial and the exceptional work of our cross-border team, including colleagues from London, Newcastle, Houston, Austin, Dallas, New York and San Francisco."

With a team of more than 150 antitrust and competition lawyers worldwide, Norton Rose Fulbright advises on all aspects of antitrust law including multinational mergers and clearances, cartels, abuse of dominance, international investigations, compliance and the important area of antitrust litigation.

Its antitrust litigation practice includes more than 40 dedicated lawyers with experience across well-established and emerging centres for antitrust litigation. The market-leading team has deep experience in antitrust and competition law, combined with robust and commercially-focused litigation skills.