Domestic Airlines Price Fixing Settlement
Photo Credit: Unsplash | Updated: May 7, 2024
What's The Airlines Settlement About?
At least $60,000,000 has been established for a settlement fund over allegations that major United States airline companies colluded to gouge customers with unfair pricing tactics. The airline settlement has already been agreed upon with Southwest Airlines and American Airlines. The original class action lawsuit was filed against the four largest commercial air passenger carriers in the United States including:
• American Airlines, Inc.,
• Delta Air Lines, Inc.,
• Southwest Airlines Co.,
• United Airlines, Inc.
Latest Status of The Domestic Airlines Class Action
The current status of the domestic airlines class action litigation and settlements as of May 2024 is still pending as United Airlines and Delta Air Airlines had tried to get the court to dismiss the case against them by filing for summary judgment back in 2021. But on September 12, 2023, the court denied their request, ruling that the case can continue. This was a win for the class of passengers suing the airlines.
However, Delta and United aren't giving up that easily. They've now asked the court to allow them to appeal the decision denying their summary judgment motion. The class lawyers have opposed this request, and the court is now considering whether to allow the appeal.
Settlement Funds from Other Airlines Still Waiting to be Distributed
In the meantime, the settlement funds from the earlier settlements with American Airlines and Southwest Airlines are still being held in escrow (a special account). These settlement funds won't be distributed to class members until the case against United and Delta is fully resolved, either through a settlement, a dismissal, or a final judgment at trial.
Clarification on Who is Excluded from the Settlements The court has also approved guidance from the class lawyers in the domestic airline class action litigation on who is excluded from the American Airlines and Southwest Airlines settlement classes. The exclusions don't just apply to the judges overseeing the case, but also to court staff, law clerks, and other court personnel involved in the litigation. This is because they are considered "agents" of the judges.
The class action lawsuit against United and Delta is still ongoing, with the airlines trying to get the court to dismiss it. But the settlement funds from the other airlines are still waiting to be paid out to class members once this case is fully resolved, which may occur once:
• 1. United and Delta settle.
• 2. United and Delta are dismissed from the case.
• 3. Or upon a favorable judgment at trial against United and Delta.
The original class action lawsuit alleges that the defendants above (American, United, Delta, and Southwest), along with US Airways and Continental Airlines, worked together to price fix through the use of monopolization and collusion in order to increase fares by limiting capacity on domestic flights intentionally and maliciously, resulting in the artificial and agreed upon price gouging of their collective customers. The settlement is still being litigated for the rest of the airlines that have not yet contributed to the settlement funds in total of $60,000,000.
What's Taking So Long with the Airlines Class Action Settlement?
At this time, the settlement funds received in the American Airlines and Southwest Airlines Settlements, less the Court-approved notice costs, remain in escrow. This is until the other two airlines, United and Delta either: settle, are dismissed, or receive a favorable judgment in which they will not have to contribute to the settlement fund on top of the already agreed-upon $60 million by Southwest and American Airlines.
How Do I Qualify?
The domestic airline settlement include any people or entities/business that meet the following requirements:
• Those who purchased air passenger transportation services for flights,
• Within the United States and its territories and the District of Columbia,
• From Defendants or any predecessor, and any affiliates, including US Airways and Continental,
• At any time between July 1, 2011 and December 20, 2017 for the Southwest Settlement, and
• At any time between July 1, 2011 and June 14, 2018 for the American Settlement.
What Can I Get?
Southwest Airlines has agreed to pay $15 million and American has agreed to pay $45 million to settle this nationwide litigation. At this time, it is unknown how much each eligible Settlement Class Member will receive. In order to receive a payment, you will need to file a valid claim form before the claims period ends.
How Do I File a Claim?
THE CLAIMS PERIOD HAS NOT YET BEGUN. A notice about the claims process, including the beginning and end of the claim period, will be made at a later date as ordered by the Court. If you want to receive a notice about the claims process or future settlements, you should submit your contact information on the Registration Form here.
References:
• WESH 2 News Orlando Florida
• 13ABC WTVG
• Travel Pulse
How Do I Find Class Action Settlements?
Find all the latest Class Action Settlements you can qualify for by getting notified of new lawsuits as soon as they are open to claims on OpenClassActions.com