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Case ID: 3572 | Consumer Products | 07/26/2004
A nationwide class action has been filed against American Airlines on behalf of passengers who made and then canceled flight arrangements between 1998 and the present, but did not receive a refund of "passenger facility charges" or "passenger security service fees." The action alleges that the funds were kept in violation of federal Transportation Security Administration regulations. The action seeks unspecified compensatory damages.
The suit alleges that the airline is keeping millions of dollars in unused ticket surcharges-- known as passenger facility charges and passenger security service fees -- which are meant to be used for capital improvements and security. When a traveler cancels their plans and gets a refund, the fees are normally given back. If passengers don’t refund their tickets, the airline allegedly keeps the fees in question, instead of returning them or turning them over to the airport or Transportation Security Administration. Under current federal legislation, airlines collect "passenger facility charges" of anywhere from $1 to $4.50 as well as "passenger security service fees" of $2.50 on departing flights. The suit was filed on behalf of Julie Hayes, a travel consultant who purchased round-trip tickets between Dallas-Fort Worth and La Guardia in 2002. If just one ticket on each of American's 760,000 flights in 2003 was neither refunded nor used, the airline could be liable for up to $8 million for that year alone. Passenger security service fees are earmarked for use by the TSA for airport security, while passenger facility charges are to be used for airport improvements or related projects such as the recently completed AirTrain to JFK. Passenger facility charges at all three New York-area airports are $3. 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 Consumer Products Cases of Interest A class action has been filed against Electronic Arts Inc. (EA), (NasdaqNM:ERTS), certain of its officers and directors by stockholders who purchased the company's common stock between January 25, 2005 and March 21, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. The parties have reached a $73.58 million settlement in several related class actions filed against manufacturers that produced Acrylinitrile-Butadiene-Styrene (ABS) drain, waste, and vent pipe between 1984 and 1990, on behalf of past and present residents, occupants, and owners of residences or other structures containing ABS pipe. The actions alleged that the companies used unsuitable plastic resins that may cause the pipe to crack and leak. Persons eligible to take part in the settlement may contact the attorneys for the class for more information. Several class action suits have been filed against Dell Inc., the world's largest purveyor of personal computers, and financial partner CIT Bank, claiming that they are systematically deceiving customers who buy Dell products. On June 24, 2005, The U.S. Supreme Court handed a victory to 11,000 small gas station owners in the longstanding class action battle against ExxonMobil Corp.
The case centered on Exxon's August 1982 discount-for-cash program, which promised station owners a price cut for gas to offset a new credit card fee the oil company was charging them. The station owners alleged that Exxon, which later merged with Mobil, eliminated the price discount seven months later, yet for years continued to tell stations that it was providing the discount. On April 3, 2006, a federal jury trial will begin to consider claims made against the four largest United States beef packers arising out of the misreporting of the U.S. Department of Agriculture's (USDA's) boxed beef prices that occurred between April 2 and May 11, 2001. The lawsuit, filed 2 1/2 years ago by three cattle producer-plaintiffs named Herman Schumacher, Michael Callicrate and Roger Koch. All plaintiffs are proud members and staunch supporters of R-CALF USA. A class action has been filed in federal court alleging that the Latin Shopping Television Network and its parent company, the Crediamerica Group, have been systematically preying on and defrauding customers. The action is brought on behalf of all customers who have bought merchandise from either company since their formation (believed to be about January 1, 2000) and who did not receive it at all, within a reasonable time period, or as promised to the customer. |
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