50 SKY SHADES - World aviation news

The Drink Coupon That Made Southwest Pay $1.65 Million to Lawyers

Download: Printable PDF Date: 28 Aug 2015 06:35 (UTC) category:
Publisher:
The Drink Coupon That Made Southwest Pay $1.65 Million to Lawyers - Airlines publisher
Tatjana Obrazcova
Source: Skift

A federal appeals court has upheld a settlement in which Southwest Airlines passengers got free drink vouchers but lawyers who sued the airline got $1.65 million in cash.

The 7th Circuit U.S. Court of Appeals in Chicago last week upheld a lower-court ruling.

Southwest includes a drink coupon when passengers buy a higher-priced Business Select ticket. In 2010, the airline started requiring that passengers use the coupon on that flight instead of keeping it for later use.

Several passengers filed class-action lawsuits, pointing out that the coupons didn’t have expiration dates. Southwest settled in 2013, with two lead passengers getting $15,000 each and the lawyers getting up to $3 million. A lower court cut the legal fees to $1.65 million.

Two other passengers appealed, complaining that the lawyers got cash while Southwest customers received only new drink coupons. The lawyers also appealed, saying that they should get the full $3 million.

Congress passed a law in 2005 to crack down on class-action settlements in which consumers get vouchers of little value while lawyers get cash. The appeals court said the potential for abuse is greatest when the vouchers force consumers to do business with the company that shorted them in the first place. Still, it ruled that the Southwest settlement was fair.





Recommended

Dassault brings EASy IV upgrade to Falcon 2000 series, extending its latest standard to the best-selling family

Dassault will introduce the fourth-generation EASy IV flight deck on newly built Falcon 2000LXS aircraft, while also making the upgrade available as a retrofit across the entire Falcon 2000 EASy fleet...

Embraer delivers first E175 with new RECARO cabin interior to American Airlines

Embraer has delivered the first E175 fitted with next-generation RECARO passenger seats to American Airlines, marking another step in the ongoing modernization of one of the world's most successfu...

Velocity Maintenance Solutions expands hangar facilities at Wilmington Airport, enhancing service capacity and growth prospects

Velocity Maintenance Solutions, an FAA-certified provider of maintenance, repair and overhaul services, has announced a significant expansion of its facilities at Wilmington Airport (ILG) in Delaware,...

BPE Air reports nearly US$90 million in 2025 revenue as Aldrew Crowe advances integrated aviation platform

BPE Air, the aviation company founded and wholly owned by entrepreneur Aldrew Crowe, reported approximately US$90 million in revenue in 2025, marking a major milestone in the growth of its integrated...

Android Apps development in Riga, Latvia