Stagecoach settles huge boundary fares legal case

Stagecoach South West Trains (SSWT) has settled a long-running legal case worth £25 million with train passengers in one of the largest class action cases of its kind in the UK.

The lawsuit was originally brought against the company in 2019 after allegations that the franchise, which ran many suburban routes from stations in central London, had overcharged its passengers regarding boundary fares. The case centred on passengers who carried a London Travelcard not being offered a cheaper ‘boundary fare’ ticket when travelling inside the capital’s fare zones, therefore effectively paying twice to travel inside London and onwards to destinations outside of the zones.

SSWT did not admit to any legal liability for any wrongdoing but a spokesperson for Stagecoach Group commented: "We are pleased that the Competition Appeal Tribunal has approved the collective settlement that we have agreed with the claimant in this long-running case related to historic matters.

"As legal proceedings are ongoing, we will not be making further comment on this matter."

SSWT operated the franchise before losing it in 2017 to South Western Railways, jointly operated by First Group and MTR, which have themselves been named as defendants in the suit. Also named is London and South Eastern Railway, which ran the south eastern franchise before it was taken over by the Department for Transport in 2021. There is also another claim against Govia Thameslink Railway.

The case against those companies is due to commence on 17 June ahead of a second trial scheduled for next year.

A spokesman for Woodsford Group, which has funded the litigation, added: 'This is the largest settlement in the history of the collective proceedings regime in the UK.'

“Now that the settlement has been approved by the Competition Appeal Tribunal, a scheme will be set up to allow class members to submit a claim for redress.”