CURRENT CASES
Air Passenger
In re: International Air Transportation Surcharge Litigation
The Cartel
Between 2004 and 2006 British Airways and Virgin Atlantic conspired to increase the fuel surcharge they added to the price of tickets for “long haul” flights to and from the United States and the United Kingdom. Virgin Atlantic sought amnesty from the Department of Justice for its participation in the conspiracy, and British Airways pled guilty to violations of U.S. and U.K. antitrust law. Dozens of lawsuits were filed across the country seeking damages resulting from the conspiracy, and the litigations were consolidated before District Judge Charles Breyer of the United States District Court for the Northern District of California in San Francisco.
The Settlement
The Court appointed Hausfeld LLP as co-lead counsel with Cotchett Pitre & McCarthy to represent the potential class of purchasers harmed by the conspiracy. Following over a year of difficult negotiations, expert analysis, and discovery, Plaintiffs negotiated a comprehensive $200 million settlement of the claims of both U.S. purchasers and U.K. purchasers who choose to file a claim for a refund. The groundbreaking settlement, primarily negotiated by Chairperson Michael Hausfeld, represents the first time foreign purchasers have been afforded an opportunity to participate in a settlement on an equal footing with purchasers in the United States. The settlement provides for a refund of 33% of the surcharge paid on each ticket purchased during the conspiracy period, an amount Plaintiffs' expert determined was approximately 100% of the damages caused by the conspiracy. The settlement was heralded by Judge Breyer as “a very good result” for the class. See September 26, 2008 Hearing Transcript, at 29.
Any individual or entity that purchased an airline ticket from BA or VA for long haul travel in the United States or the United Kingdom during the class period is eligible for a refund under the terms of the Settlement. Corporate purchasers who paid for travel for their employees during this time period are eligible for a refund for each qualifying employee ticket purchased. Complete details of the settlements are available on the Settlement Administrator’s website created to notify the class, www.airpassengerrefund.com. Three objectors in the United Kingdom have appealed the Court’s order approving the settlements, so all payments to class members will be delayed until that appeal is resolved.
The air passenger case was litigated by an international team of attorneys providing expertise on both United States and United Kingdom law. In the United States, the action was litigated by Michael D. Hausfeld, and Michael P. Lehmann. In the United Kingdom, Anthony Maton and Scott Campbell litigated the action. The case was administratively closed on 10 November 2011.
