SOUTHWEST SETTLES PRICE FIXING LAWSUIT FOR $15 MILLION
February 5, 2018
Beginning in July 2015, numerous antitrust lawsuits were filed by passengers against legacy carriers American Airlines, Delta Air Lines, Southwest Airlines, and United Airlines. The cases alleged that the airlines “participated in an unlawful conspiracy” to artificially limit capacity in order to increase fares in violation of Section 1 of the Sherman Act. The cases were consolidated into a class. Earlier this month, a D.C. federal court judge approved a $15 million settlement between Southwest Airlines and members of the class. The preliminary settlement, which must still be approved by the Court, notes that Southwest denies colluding but will provide “a full account of facts” regarding the nature of the meetings that took place between the airlines to commit the alleged conspiracy. The other co-defendants, American Airlines, Delta Air Lines, and United Airlines, have similarly denied any wrongdoing but continue to fight the allegations. Southwest’s cooperation will include: a full account of facts related to the alleged conduct, payment for meetings between plaintiff’s counsel and an industry expert, and interviews, affidavits, depositions and testimony of current Southwest employees to assist the class plaintiffs at trial.
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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