U.S. SUPREME COURT DENIES REVIEW OF $39.5 MILLION ANTITRUST SUIT
January 16, 2018
On April 21, 2017, the Competitive Enterprise Institute (CEI) appealed a case to the U.S. Ninth Circuit Court of Appeals (the Ninth Circuit) regarding a $39.5 million settlement between Air France, Air New Zealand, Singapore Airlines, etc. and a class of plaintiffs claiming the carriers fixed prices on long-haul transpacific flights to Australia, New Zealand, and the Pacific Islands. CEI claimed the settlement unfairly lumped the claims of customers who bought tickets through travel agents with those who purchased directly from the airlines. CEI asked that subclasses be created with separate representatives to independently advocate in the interests of the different groups. The appeal also asked the Court to consider a separate class for Japan Airlines’ travelers whose city of origin was abroad rather than domestic. The Ninth Circuit, which heard argument in April, upheld the terms of the settlement 2-1 and reasoned that the district court properly certified the settlement class and was not obligated to create subclasses for purchasers of U.S.-originating travel and direct purchasers of airfare.
CEI petitioned the U.S. Supreme Court to overturn the Ninth Circuit’s decision but on December 4, 2017, the Supreme Court denied the petition. As a result, the Ninth Circuit’s decision will stand and the settlement agreement will go into effect.
If you have any questions, please contact Evelyn Sahr (esahr@eckertseamans.com, 202-659-6622) or Drew Derco (dderco@eckertseamans.com, 202-659-6665).
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