Air PassengerIn re International Air Transportation Surcharge Antitrust Litigation; MDL No. 1793 (N.D. Cal) On February 15, 2008, Cohen Milstein Sellers & Toll PLLC along with co-counsel Cotchett, Pitre & McCarthy entered into a ground breaking legal settlement that, for the first time ever, resolves a class action lawsuit on a collective basis under both U.S. and U.K. law. The agreement, which affects over 8 million people in the US and UK, provides $59 million for American ticket purchasers and £73.5 million for UK purchasers who bought tickets from either British Airways (BA) or Virgin Atlantic Airways (Virgin) between August 11, 2004 through March 23, 2006, with no deductions for attorneys’ fees or other costs. This settlement marks the first collective settlement of its kind for British consumers. The settlement comes in the wake of both airlines’ admissions that they participated in the conspiracy. BA pled guilty to criminal violations of US antitrust law and paid fines that were issued against BA in August 2007 by both the UK’s Office of Fair Trading and the US Department of Justice. Virgin escaped fines because it broke the cartel by whistle-blowing to the authorities, but has admitted in U.S. court that it violated both US and UK law. Preliminary approval of the settlement was granted in a US Federal Court on April 25, 2008, and the following timetable for the remainder of the settlement process has been agreed: - Email notices explaining how to claim will be sent in June to all those passengers have registered for their refunds or for whom BA and VA have maintained contact information. After June, passengers will be able complete a claim form online to obtain a refund.
- Letters will be sent from Cohen Milstein directly to registered business claimants setting out details of how they will be assisted in processing large claims volumes.
- A notice detailing all the settlement terms will be posted on the www.airpassengerrefund.co.uk website by the middle of June.
- Claimants who have any objections to the settlement must file those objections with the Court, in accordance with the procedures set forth in the class notice by 12 September 2008.
- A final fairness hearing, at which the Judge will determine whether the settlement receives final approval, will take place in San Francisco, California on 26 September 2008. Any claimant’s objections to the settlement will also be heard at that time.
- Corporate Travel Agents and businesses will be able to call the settlement administrator directly and attach their spreadsheets for processing claims.
- All individual and business claims will begin processing in October 2008 on a rolling basis.
Commenting on the settlement, a partner at Cohen Milstein, said, “We are delighted to confirm that since we announced this groundbreaking settlement for UK passengers on15 February, we have already received over 100,000 registrations from individuals and over 1000 registrations from businesses ranging from SMEs to blue chip firms. Having achieved such a significant resolution it is gratifying to see so many UK customers claiming back what is rightfully theirs. We would encourage consumers and businesses who have yet to done so to claim their refunds." A unique aspect of the settlement is that individual passengers and businesses that purchased BA and/or Virgin tickets in the US will be paid in dollars, while passengers who purchased such tickets in the UK will be paid in pounds sterling. The amount refunded will depend on the amount of the surcharge paid, but will be up approximately £10 (about $20) for each flight segment. Thus, a family of four could receive up to £80 (about $160) for a round-trip flight. According to economic experts, the refund provided for in the settlement constitutes 100% of the illegal overcharge that passengers paid. In the US, BA and Virgin have agreed to donate any portion of the settlement fund that is unclaimed to Miracle Flights for Kids. In the UK, unclaimed funds may revert to BA or Virgin. A senior partner at Cohen Milstein, comments: “We are delighted to have achieved such a terrific settlement for consumers. BA and Virgin overcharged their customers for almost two years, and this settlement recovers 100% of that unlawful overcharge – with no deductions for attorneys’ fees or other costs. Customers should demonstrate that such behavior is unacceptable by making a claim to recover the amount they overpaid. “This is the first time non-US citizens have been rewarded on an equal footing to US citizens in a case before the US courts, making this a legal precedent and a significant milestone in both US and UK legal history.” A partner at Cohen Milstein, also adds: “This is a great victory for UK consumers that creates a template for vindicating UK consumers’ rights and deterring violations of UK competition law. Cohen Milstein will continue in its efforts to redress violations of UK law, and will also continue to seek reform of the current system to allow consumers in the UK to seek redress on terms equal to those of consumers in the United States.” Contact Information: Passengers or businesses who wish to receive their refund should go to www.airpassengerrefund.com (US) or www.airpassengerrefund.co.uk (UK) to provide their contact information or they may call 1-877-625-9432 (US) or 0800-043-0343 (UK). The entire claims process is free. All victims of the alleged cartel, from all nations, are encouraged to contact Cohen Milstein if they have information regarding this case or wish to discuss potential claims at (202) 408-4600 or toll-free at (888) 347-4600. |
