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Case ID: 2847 | Employment | 01/05/2004
Travel agents have file a nationwide class action against online airline ticketer Orbitz, LLC and the airlines that created it, alleging that the airlines are using Orbitz to eliminate traditional travel agents and monopolize the airline ticket distribution market in violation of federal antitrust laws. The action seeks compensatory and triple punitive damages, and a court order that will force the airlines to either dissolve Orbitz altogether or divest themselves of all ownership interest in the business.
Six travel agencies sued Orbitz and three of its principal owners--United Airlines, Inc., American Airlines, Inc. and Delta Air Lines, Inc.--alleging violations of the federal Clayton and Sherman Acts. The action also seeks an order that will require the airlines to reinstate the practice of paying commissions to travel agents. The action was filed to give traditional travel agents a superior alternative to joining the only other similar case, Hall v. United Airlines Inc. in the U.S. District Court for the Eastern District of North Carolina (docket number 7:00cv123). In the Hall case, the plaintiffs will have to prove that the airlines conspired to eliminate commissions to traditional travel agents. Hall was filed before United, Delta, Continental Airlines, Inc., and Northwest Airlines, Inc. created Orbitz in November 1999. American joined as an investor in 2000. The action against Orbitz does not require a conspiracy--only that the airlines entered into a "combination," or "concerted action" like Orbitz, and that the combination discouraged passengers from using travel agents, preventing them from acting as effective competitors in the distribution of airline tickets to passengers. In March 2002, the airlines behind Orbitz all announced that they would cease paying commissions to traditional travel agents for tickets sold on their flights. That meant that traditional travel agents could now sell tickets only to customers willing to pay a service fee, or at a loss. Few customers are willing to pay such a fee, with the result that the market is now over-saturated with travel agents who established their businesses under the old commission format. Because of the surplus of agents, allegedly created by the airlines' decision cut agents out of the supply chain, there is now a significant barrier to entry for new companies considering entering the ticket distribution market--who wants to enter an unprofitable market? The action is currently stayed, pending the outcome of the Hall action. The Orbitz court ruled that the actions are sufficiently related that the outcome of Hall will have an effect on the manner in which the Orbitz action proceeds. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Employment Cases of Interest Current and former employees of Inter-Con Security Services filed a class-action lawsuit accusing the firm of violating federal and state laws by withholding overtime pay for security guards at Kaiser Permanente hospitals and other locations in California.
A class action has been filed against Onyx Waste Services, Inc., a Wisconsin based company that operates a trash removal company in Florida, for failure to pay overtime wages in violation of the Fair Labor Standard Act (FLSA). A statewide collective action has been filed in Texas against Pinkerton's, Inc. and its parent, Securitas Security Services USA, Inc. The action is brought on behalf of all Texas residents employed as security guards by Pinkerton's or Securitas who were not paid overtime compensation during their employment. The action is brought under the federal Fair Labor Standards Act and seeks statutory damages and back pay as well as injunctive and declaratory relief. As a collective action, all potential claimants must “opt-in” to be considered a member of the class. The guards have asked the court to issue notice to all potential claimants. Two former South Sound Les Schwab employees have filed a class action lawsuit against the tire company, saying the company denied them promotions, training and other employment opportunities because they are women.
A class action lawsuit has been filed in the Southern District Court of Florida against Sushi Takara, Inc. The case involves violations of the Fair Labor Standards Act. No additional information about the substance of the allegations is available at this time. Classactionamerica.com will monitor this case and provide additional details as soon as they become available. Current and former Caribou Coffee employees alleges Caribou misclassified its store managers and managers-in-training under the Minnesota and federal Fair Labor Standards Acts to avoid paying them overtime. The class action lawsuit that was filed claims three former Caribou Coffee managers from Minnesota routinely worked 55 hours a week as store managers but spent most of their time performing nonmanagerial duties including waiting on customers, making coffee drinks and cleaning store bathrooms. |
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