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In recent years, the airline industry has been under scrutiny for alleged unfair pricing tactics. A significant development in this regard is the $60,000,000 settlement fund that has been agreed upon with Southwest Airlines and American Airlines. This settlement is the result of nationwide litigation accusing the airlines of colluding to artificially inflate prices, thereby gouging customers. The 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., and United Airlines, Inc. This article delves into the details of this settlement, providing insights into the allegations, the settlement process, and how affected individuals can file a claim.
The SettlementThe settlement of $60,000,000 is a significant amount aimed at compensating affected customers. Southwest Airlines has agreed to pay $15 million, and American Airlines has agreed to pay $45 million to settle the litigation. This settlement was given final approval by U.S. District Judge Colleen Kollar-Kotelly, marking a significant milestone in this nationwide litigation. The settlement amounts reflect the seriousness of the allegations and their potential impact on customers. However, it’s important to note that the settlement is not an admission of guilt by the airlines, but rather a resolution to the litigation.Eligibility for the SettlementDetermining who is eligible for the settlement is a crucial aspect of this process. Certain travelers who used American or Southwest Airlines during the specified period are eligible to collect money as part of this consolidated lawsuit settlement. The specific criteria for eligibility are based on the purchase of air passenger transportation services for flights within the United States and its territories and the District of Columbia from the defendants or any predecessor, subsidiary, or affiliate thereof, including US Airways and Continental.Filing a ClaimFor eligible individuals, the next step is to file a claim. In order to receive a payment, eligible Settlement Class Members will need to file a valid claim form before the claims period ends. The exact amount each member will receive is currently unknown and will likely be determined based on various factors, including the number of claims filed. It’s important for potential claimants to stay informed and submit their claims within the specified period.The HearingA key part of the settlement process was the hearing held on March 22, 2019. This hearing was to consider whether to approve the settlements and a request for attorneys’ fees up to 30% of the settlement funds, plus reimbursement of costs. The hearing was a necessary step in the legal process to ensure that the settlement is fair and reasonable for all parties involved.The AllegationsThe allegations at the heart of this lawsuit are serious. The original class action lawsuit alleges that the defendants, including American Airlines, United, Delta, and Southwest, along with US Airways and Continental Airlines, worked together to fix prices through monopolization and collusion. This was allegedly done by intentionally limiting capacity on domestic flights, resulting in the artificial and agreed upon price gouging of their collective customers. If proven, these allegations point to a significant breach of trust and a violation of antitrust laws.The Current Status of the SettlementAs of now, the settlement funds received in the American Airlines and Southwest Airlines settlements, less the court-approved notice costs, remain in escrow. This means that the funds are being held in a third-party account until certain conditions are met. The settlement is still being litigated for the rest of the airlines that have not yet contributed to the settlement funds, totaling $60,000,000. This ongoing litigation underscores the complexity of this case and the potential for further developments.Who Qualifies for the Settlement?The domestic airline settlement includes all persons and entities who purchased air passenger transportation services for flights within the United States and its territories and the District of Columbia from the defendants or any predecessor, subsidiary, or affiliate thereof, 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. This broad range of dates and the inclusion of all domestic flights mean that a large number of individuals and entities may be eligible for a portion of the settlement.How to File a Claim?The process of filing a claim is a critical step for those eligible for the settlement. The claims period has not yet begun, and 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. To receive a notice about the claims process or future settlements, eligible individuals should submit their contact information on the Registration Form provided on the settlement website. It’s important to note that filing a claim is the responsibility of the individual, and failure to do so within the specified period may result in the forfeiture of any potential settlement funds.What Can You Get from the Settlement?The settlement amount of $60,000,000 is a significant sum, but how much each eligible Settlement Class Member will receive is currently unknown. The final amount will depend on a number of factors, including the total number of eligible claimants and the specifics of the settlement agreement. Southwest Airlines has agreed to pay $15 million and American has agreed to pay $45 million to settle this nationwide litigation. In order to receive a payment, eligible individuals will need to file a valid claim form before the claim period ends. While the exact amount each person will receive is not yet known, the settlement represents a significant victory for consumers and a strong message to the airline industry about fair pricing practices.References
Domestic Airlines Price Fixing Settlement – OpenClassActions.comHere’s What You Need to Know So Far About the Massive Domestic Airlines …Can Southwest and American Airlines Passengers Collect Money from a …Settlements Totaling $60 Million Impact Purchasers of Domestic Airline …$60M Domestic Airlines Class Action Settlement : r/amex – Reddit